What is cryptocurrency?
Cryptocurrency is a digital way of trading money and conducting transactions digitally in a decentralized manner. This manner implements the blockchain method. This might make a person ponder what blockchain is. In case you’d like to learn how crypto works, you also need to understand what blockchain is.
Relation between cryptocurrency and blockchain
The blockchain method is the very basis of cryptocurrency. The blockchain method is a system in which a record of transactions made through cryptocurrency is stored across several digital servers around the world, where the details of the transactions are made available to all the involved parties in their respective transactions. Quite many, blockchains allow users to develop build applications, and draft/program contracts. This provides users with a sense of security while performing transactions. It is also known to provide instantaneous, shared and completely unequivocal information stored on an rigid ledger that can only be available to users with required access.
How crypto works?
Mining is aprocess which comprises the generation os cryptcurrency, verifications of new coins during transcations and using computer knowledge to get answers to resolve mathematical equations to produse new coins. It is the most verified and trusted way of getting crypto currency.
However, mining is not a user’s only option. Buying crypto currency from brokers is also a common way. With your acquired crypto currency, you can do anything; buy it, sell it, spend it, store it, etc.
Any person who is looking to get into crypto is bound to wonder how much is crypto actually worth. Unlike standard currencies, banks- or even governments- can’t decide what crypto is worth. The worth of crypto is dependent on the public’s opinion of it. Therefore, it’s value is always fluctuating.
What can you do with your crypto currency?
To underatand how crypto works, and what you can do with it, you need to look into how you will be storing your crypto. There are basically two ways of storing crypto
- Hot wallet storage: crypto storage that makes use of online software to protect the private information to your valuable assets is referred to as hot water storage. They don’t charge a fee.
- Cold wallet storage: Unlike hot wallets, cold wallets which are also known as hardware wallets depend on offline electronic devices to securely store your private information. They also charge a fee.
There are numerous things that you can do with crypto currency. But, to use crypto currency as a justifiable way of payment, you need to be aware of the companies that accept crypto as a valid form of payment. Some of them are:
- Luxury watch brands- Patek Philippe, Rolex
- Starbucks
- Streaming platforms such as Twitch
- Fast food restaurant chains such as Pizza Hut, Burger King and KFC
- The online travel agency CheapAir
- Starbucks
- Wikipedia
- Insurance companies
- Technology and e-commerce sites such as Microsoft, AT&T.
- Car dealers
- Amazon
In the coming years, crypto is assumed to be a main stream way of payment, and then there will be almost nothing that you can’t do with crypto. Crypto opens a window to easier and faster transactions in the blink of an eye, all the while letting you have complete control over your assets.
Crypto currency is providing a medium for many institutions and people to advance digitally. It is also an ever growing platform that won’t be going out of business. After understanding how crypto works, it’s hard to imagine someone unwilling to invest in it.
