Basics about Cryptocurrency

By | September 7, 2019

Cryptocurrency is a medium of exchange that uses the cryptographical functions to perform secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Cryptocurrency is the future of money or a digital asset that functions as much the same as legal tender. Cryptocurrencies investments have seen a gradual rise over the years which depicts the general acceptance. Currently, we are seeing a big change in cryptocurrencies due to the entering of institutional and smart money.

How to Purchase Cryptocurrencies

There are many top cryptocurrency events where you found options for purchasing cryptocurrencies. The easiest way is simply to buy them from holders but instead of this most of the people buy them on a cryptocurrency exchange.

Cryptocurrency exchanges popularly known as digital currency exchanges or DCE’s are online platforms where people can buy, sell, and trade their cryptocurrencies. Fiat exchanges and crypto to crypto exchange are two basic types of the exchange system. Fiat exchanges allow a customer to purchase cryptocurrencies with traditional money sources, like U.S. dollars or euros. While on the other hand, the Crypto to crypto exchanges allow those who own one kind of cryptocurrency to trade it for another kind but the crypto exchange system is as new as cryptocurrencies themselves, so, it can be tricky to choose one to trust with your business. While exchanging the cryptocurrencies the customers will need to find an exchange that deals in the specific currency they are interested in.

Apart from this, Customers can find a platform with a solid reputation, and that is free from a security breach and regulatory issues.

How we can Store the Cryptocurrencies

Storing a cryptocurrency is a major concern for every customer. However, there are many security options that we can use to protect our Cryptocurrency but the easiest way to store our cryptocurrency is Crypto Wallet.

A cryptocurrency wallet is a software that is designed to store your public and private keys, send and receive digital currencies, monitor your balance, and interact with various blockchains.

There are a wide variety of cryptocurrency wallets, including Paper Wallet, hardware wallet, Web Wallet, Mobile wallet and desktop wallet.

The problem with online wallets is that they all leave their owners vulnerable on some level to hacking. So, it is highly recommended that owners use a hardware wallet for their cryptocurrency storage. A hardware wallet is a special type of bitcoin wallet which is built to store your private keys offline away from the unsafe online environment.

Buying and Selling Things using Cryptocurrencies

Now that you own some cryptocurrency, what can you do with them? Will, you can buy or sell things by using cryptocurrency? The answer is yes, yes you can use your cryptocurrency the same as with any traditional currency. There are two basic uses. You can use your coins as an investment: buying, holding, trading, and selling them to make a profit or use them to buy stuff – actual products and services.

Are Cryptocurrencies accepted as Payment?

Yes, there are numbers of merchants and companies that accept cryptocurrencies as payment. Nowadays, the most widely accepted cryptocurrency is Bitcoin, but many retailers accept other major coins as well.

Author Bio

Sujit is a Crypto enthusiast and a blogger by passion. He Works for a Crypto news Company Cryptoknowmics. Cryptoknowmics is one of the best companies in this industry because they have the passion to provide users the relevant crypto, bitcoin, and altcoin news today. You can follow him on LinkedIn and Twitter too.