Cryptocurrency Is Simple: Future Of Money

By Peter Gabriel 2 years ago

Cryptocurrency refers to digital currency or a digital tradable asset built on blockchain technology that exists only in online form https://bitpapa.com. Cryptocurrency or crypto was introduced and designed so that no central authority such as Govt or Financial institutions maintains it and we get a decentralised mode of exchange. Cryptocurrency is simple which use encryption to authenticate and protect transactions and are very safe. These are stored in Digital wallets and can be traded peer to peer without any verification from a bank or govt. There are currently thousand of different types of cryptocurrencies in the world Cryptoccurency in Naira.

How to Buy and Store Crypto

Crypto can be obtained by two methods.

  • Mining
  • Buying

Mining

This process involves solving of very complex problems using very powerful machines in exchange for crypto coins.

Buying

To buy a crypto currency chooses a platform and makes an account. The account can be traditional broker or cryptocurrency exchanges where you can buy cryptocurrencies using real world money like Dollars, Euros etc.  After placing the order with your broker or exchange one can get any kind of cryptocurrency after purchasing a crypto asset one needs to store it safely to protect it from hacks and theft.

To store these digital assets, one can use crypto wallets, which are physical devices or online software where one can safely store his digital assets using a key.

Examples of crypto currencies

  • Bitcoin (BTC)

Bitcoin was one of the first and one of the worlds’s most known cryptocurrencies, it was initially created to be used as a digital payment system, but experts say it’s too volatile for that.

  • Litecoin (LTC)

This currency is almost similar to bitcoin but with added features such as faster payments and more transactions.

  • Ethereum (ETH)

It was developed in 2015 and is a cryptocurrency of the Ethereum network. It is the second most popular crypto after Bitcoin.

Is Crypto Safe

Cryptocurrencies are made using the blockchain technology, which is a fairly complex and technical process and gives digital ledger of crypto transactions that are hard for hackers to tamper with and to track. A two step Authentication process is used for transactions increasing the safety. Despite all that crypto currency start ups and exchanges have been hacked so extra precautions are necessary. Also, the price of crypto currencies is very volatile and change a lot in seconds so there is a still big risk when it comes to crypto investments.

Crypto’s Future

Crypto currencies are still new phenomena and have both merits and de merits but in today’s virtual world soon these currencies may change the way we use and invest our money.

The crypto currencies will not only have a financial implication but can be used for various other purposes. We as investors and users need to be Smart and use these assets only when we have full knowledge so that these can end up as Smart investments in the future.