Cryptocurrency has been in the spotlight in the investment industry for a few years now, but there are still some who are unsure on whether they should make the jump.
Investors, enthusiasts and those who want to know about the digital assets, here are 3 hard and fast facts.
Cryptocurrency, or crypto for short is a type of digital asset that doesn’t exist in physical form. It’s mostly exchanged with other cryptocurrencies online and without the need for a middleman, such as a financial institution or a government.
The most famous form of crypto are Bitcoin and Ether, and it’s not hard to make your own. Today, there are dozens of cryptocurrencies, each with its own design and function.
Why Use Cryptocurrency?
The transactions that we’re used to are the traditional ones, such as handing over cash in exchange for a product or service.
Credit card, debit card and bank payments are also some of the most common payment methods out there. However, cryptocurrencies such as Bitcoin are now being widely recognized, and as such more merchants, websites and even physical shops are announcing that they accept this type of payment.
As a method of payment, crypto transactions have a few good points, notably very minimal transaction fees and speed. Sending cryptocurrency to another digital wallet is cheaper and the travel speed is faster compared to bank wires and payments. It can get to the other side of the world in seconds, and then that recipient will be able to confirm it and send the goods as promised.
Buying and Selling Cryptocurrency
Cryptocurrencies are available in online platforms called exchanges. Depending on the website you may have to register to gain access, but then the cryptocurrency itself is decentralized, which means you won’t be tracked.
Managing your cryptocurrency is important so you won’t lose money. You can open an account with a crypto platform so you can get timely news and information on when to buy or sell a particular cryptocurrency.
To get the cryptocurrency of your choice you can choose from a list. The value of all available cryptos are shown on the exchange so you know how much you can get for your money. Use a credit card or debit card to complete the transaction and point where the digital asset is going, e.g., to a digital wallet and it should be done in minutes.
You can choose to sell your cryptocurrency at a later time depending on whether its value has risen. From here, you can choose to sell it back to the exchange or another person who wants to buy it from you. If this is the case then you must put in the crypto amount and send it to the digital wallet via keys, or what’s equivalent to a person’s bank account number.
Another way to gain cryptocurrency is to mine them. You must purchase or rent capable hardware to do this. That machine will solve complex algorithms for you, and in return you’re awarded a bit of your chosen cryptocurrency.