Are you confused about cryptocurrencies? Well, you’re not alone, and in just a little bit of time, you’ll be given all the answers. Before investing in cryptocurrency it’s important to know what makes it different from cash and other payment methods. As well as knowing how to detect scams and fake accounts.
A cryptocurrency is a form of digital currency that is simply electronic. There’s no tangible bill or coin that is used for the purpose unless a service is used to cash in crypto for a physical coin or token. Crypto is exchanged with individuals online using a phone or computer. Two of the commonly used types of crypto are Bitcoin and Ether however new ones are continuously being made.
How is Crypto used?
People use cryptocurrency for quick payments to avoid transaction fees; paying with crypto can also be done anonymously. An additional use for crypto is as an investment; buying it when the price is low and waiting for the value to go up.
How to get a hold of Crypto?
Buying crypto is done through an online trading platform. People have also managed to earn cryptocurrency through a process called ‘mining’ which is done manually – requiring complex computer equipment to solve complicated math puzzles.
In which way do we store valuable Crypto?
Crypto is stored in a digital wallet, it can be online, on a computer, or an external hard drive. However, if your online exchange platform goes out of business or something unexpected happens like a forgotten password, it is likely that no one can help you recover your funds. Because crypto is transferred without an intermediary there is often no one to turn to for help.
How is Crypto different from U.S dollars?
Cryptocurrency is not insured by the government like U.S dollars. Therefore, if something goes wrong the government has no responsibility to step in and help you.
The value of Cryptocurrency changes constantly and is hardly ever stable. Depending on many factors if an investment is made that’s worth thousands of dollars today; tomorrow it can be worth only hundreds. And it works in the way that if the value happens to go down there’s no guarantee that it will go up again however it is possible.
Using Crypto to pay
Cryptocurrency payments are not legally protected such as credit and debit cards. For example, if you face any issues with your credit card, the company is there to help you. Cryptocurrencies typically don’t offer that kind of service.
Cryptocurrency payments are not reversible, once you made transaction chances are you won’t get it back unless the receiver sends it back. Before making a payment with crypto do research on who you’re dealing with.
How to avoid scams?
Scammers are always on the market and we must keep an eye out for them. A definite sign of a scam is being told crypto is the only way of payment. Of course, if you pay there’s no way of getting your money back and that’s exactly what scammers are counting on.
Scammers oftentimes say they can help you make more money by giving them crypto you’ve invested in. Once logging in to the investment account you’ll find that you won’t be able to withdraw money unless you pay fees.
Scam jobs are also a common occurrence. People often promise a job but end up taking your information and money and leaving you with nothing.
Pros and Cons About Crypto :
- No chance of information leakage, crypto transactions usually stay anonymous.
- Immediate and secure transfers. Once you have money in your crypto wallet the ability to transfer and pass it to another person can be done in seconds. There’s no need to fill out paperwork or sign any important documents.
- Illegal activities can be done using crypto; however, the government has no way to stop it from happening. The government doesn’t have authority over it. They can apply restrictions but cannot ban it.
- The value of crypto can go up and down in seconds. Nobody can predict the highs and lows therefore it can oftentimes be a risk when making a transaction or buying crypto.