Cryptocurrency is a decentralized digital money designed to be used over the internet. The world is becoming globalized with monetary instruments called cryptocurrency. Hence, Bitcoin, which launched in 2009, was the first cryptocurrency. Since other cryptocurrencies like Ethereum have been growing as digital alternatives to money issued by governments. Therefore, here is some key information to assist you to understand what they are and what they mean to you.
Bitcoin (BTC) , Ethereum (ETH), and Litecoin (LTC) are some examples.
Some additional examples of cryptocurrency are: Bitcoin Cash (BCH), Ethereum Classic (ETC), Zcash (ZEC), Stellar Lumen (XLM), and Bitcoin Satoshi’s Vision (BSV).
Key Attributes
Transferable and easy to use. Because of this, crypto makes transactions with people anywhere as paying with cash.
Private and Secure: No need to provide necessary personal information. No third parties or middlemen to raise processing costs. Consequently, no financial information compromised, or your identity being stolen. All cryptocurrencies are secure using a technology called a blockchain. To illustrate, the network powering Bitcoin never hacked.
Flexible and Transparent: No more worrying about wallet or purse. With this in mind, your cryptocurrency holdings not tied to a financial institution and are available to you anywhere and anytime. Equally important, every transaction published publicly-no room for manipulation, changing, or adjusting anything.
Cryptocurrency created around every ten minutes in the case of Bitcoin. Hence, a new chunk of transaction information (or a new block) added to the chain of existing information. As a result, in exchange for contributing their computing power to maintaining the blockchain, the network rewards participants with a small amount of digital currency.
Risk and Reward with Cryptocurrency
First, with the fast pace of the blockchain technologies comes risk and reward. With everything good, there is always the bad. Good-cryptocurrencies allow individuals to take complete control over their assets. Bad-unlike a credit card payment, cryptocurrency payments not reversed.
A crypto blockchain distributed across the digital currency’s entire network. In spite of this, there is not any control of a company, a country, or a third party. To illustrate, anyone can send you money via your public key, which is like an email address. Accordingly, the cryptocurrency network assigns an unique ‘address’ made up of a private key and a public key. The private key (basically your password, to digitally ‘sign’ transactions) is how to spend your money. Finally, the easiest way to manage your cryptocurrency via software called a wallet, which you can get via an exchange like Coinbase.
Possibilities with Cryptocurrency
You can do a wide variety of things with cryptocurrency, and the list keeps growing. Here are just a few ways to utilize your crypto for everyday activities. Shopping at over 8,000 global merchants. Donating to your favorite charities. Gift-giving to friends and family or even leave tips with QR codes. At last, traveling the world with no worries of losing your money, cards, etc. Because cryptocurrency isn’t tied to a specific country, traveling with crypto can cut down on money exchange fees.
The possibilities are endless. Get connected with Coinbase.
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