Nowadays, cryptocurrency has really been popular. Many people have already shifted to crypto and have started to enjoy its perks for being an easy-to-use digital asset. Still, many seem to have no idea about what crypto really is.
With that, we decided to make a simple guide to cryptocurrencies that may be helpful to beginners and potential users of this asset. So if you still feel confused about some crypto concepts, then feel free to read ahead.
What is cryptocurrency?
Cryptocurrency is a digital currency that may be stored in digital wallets. They work as digital tokens that have a certain value, thus making it possible to have them traded or used for your digital purchases and transactions.
With the use of crypto, all transactions can occur on a peer-to-peer basis with a system of verification and encryption. With it, all transactions tend to be encrypted on a digital ledger called the blockchain.
What is Blockchain?
The blockchain aims to store all the information on a transaction that has been made. Some of the details which it can keep are the date, time, and the amount that has been sent or received. It can also store your information along with the transaction you had made. However, unlike banks, you will not be required to divulge all of your private information as you may simply make use of a digital signature that works similarly to a username.
Characteristics of cryptocurrency
If you’re wondering about how crypto becomes different from a traditional asset, then here are some of its basic characteristics that you may want to know about.
The thing about being decentralized is that crypto tends to have its own freedom. Unlike fiat, crypto is not controlled by a third party organization such as a bank. With that, crypto can be stated to be an independent asset. With its freedom, people can use it in a peer-to-peer system.
By being decentralized, transactions made with crypto tend to be easier. With no need to fill out several forms, people may easily accomplish transactions with just a few clicks. Aside from the easy process, the transactions are also instantaneous since everything is done in a digital manner.
The thing about using crypto is that it is very safe to use and it’s also accurate. In fact, there has never been a transaction error with the help of crypto. With regards to security, crypto users can also enjoy the fact that they get to keep their privacy intact even after making several transactions. With this characteristic, users can decide whether or not they like their name or their purpose reflect on their transaction record.
Advantages of using cryptocurrency
Now, let us take a look at the things you can enjoy if you switch to crypto.
It is accessible
Being a digital asset, you will not have to worry about misplacing your assets as you may simply have it monitored on your phone and on your gadgets. Stored in a safe digital wallet, you can always check the crypto in your account
It won’t charge you.
Another great thing about using crypto, aside from the fast transactions, is the fact that you don’t get to be charged with banking fees by using it. Also, using it doesn’t require you to have a maintaining balance for your account.
However, you may sometimes be charged with low fees from crypto once you make some international payments.
It is globally available
Although there are some countries that may not have adapted to crypto yet, there are already lots who have embraced the use of this emerging digital asset. With that, it will be easier to take part in some digital transactions even with people on the other side of the world. Adding to the fact that the transactions are safe, its users can also expect no complications when using it.
Popular forms of crypto
After having a grasp of what using crypto feels like, then here are the top 5 most popular forms of crypto which you may want to give a try.
⦁ Bitcoin (BTC)
⦁ Ethereum (ETH)
⦁ Ripple (XRP)
⦁ Litecoin (LTC)
⦁ NEO (NEO)
Overall, there are lots of things that users can enjoy with the help of crypto. Although it may seem to be a little confusing because of the countless concepts that come with it, it is no doubt that it is ideal and practical to have it in this modern world.