What is a cryptocurrency?
Cryptocurrency is a kind of digital currency, network money. Its main distinguishing feature is that cryptocurrencies do not have a common, specific storage place, like other information data.
Theoretically, an ordinary information cloud can be hacked, but this problem will not arise with cryptocurrency: each participant in this system has data on all transactions made with cryptocurrency on their computer. Indicators are automatically compared with each other according to special schemes and updated.
The basis of cryptocurrency is cryptography - a reliable way to encrypt any data. Hacking the encrypted system is not possible. If a person manages to do this, the "rebellion of the machines" will be very soon.
Why is a cryptocurrency created?
With the advent of the Internet, the demand for online payment functions has increased. That is why various electronic currencies have appeared, of which there are only more every year. In order to generate income, the creators of electronic payment systems charged huge fees for transferring money or for converting it into cash, so users were extremely unhappy.
The solution to the problem was proposed by the anonymous Satoshi Nakamoto in 2009. He created an information electronic currency called Bitcoin , which he called for exploiting when paying for all information transactions.
What is the basis of the work of cryptocurrency?
The difference between cryptocurrency and cash lies in the absence of inflation, since the electronic currency is not subject to it. With paper money, everything is simple: if there is not enough, he took it and printed it out. Nothing can be added to the cryptocurrency, the limited number of “coins” during development does not allow this. The provision directly depends on people who are eager to create / acquire them, and organizations that are interested in selling their services and goods for the corresponding cryptocurrency.
How does the cryptocurrency exchange rate change?
Supply and demand in market conditions directly affect the value of the cryptocurrency. There are various factors that influence the attitude of sellers and buyers:
the volume of issue of the monetary unit;
technological developments that are the basis of a particular crypto asset;
the function of using the currency to obtain material and other benefits;
adjustment of exchange rates by different states;
news coverage in the media, etc.
The sale and purchase of a coin is carried out through special exchanges, where the price is set.
Investing in Cryptocurrency
One of the successful passive ways to make money on cryptocurrency is investing in it. However, it is worth remembering that the cryptocurrency market is very volatile and unstable, therefore, in order to invest in such a progressive area, you need to be well prepared both psychologically and on a material level, that is, study as much information as possible on the currency you are interested in, exchange, features of use. Do not forget about the diversification of assets in order to protect yourself from losing all your savings.
Cryptocurrency storage
To store cryptocurrency, you must first create an electronic wallet through a special program that the user needs to download to his computer. Without such a storage, working with cryptocurrency is impossible, since the wallet contains a special key that allows the use of electronic funds.
Also, do not forget about security rules for cryptocurrency owners : many owners of crypto assets advise storing passwords from wallets in printed form, so that hackers cannot get to them.
What to buy with cryptocurrency?
It was assumed that you can buy anything with cryptocurrency: from household items to expensive real estate, however, despite the growing popularity of use, large transactions with bitcoins are quite rare - but in ordinary online stores this payment option is becoming more and more common, which makes users happy.
If you also want to start accepting payments in cryptocurrency in your online store, leave a request on our website, and we will be happy to help you connect our reliable and convenient crypto processing for any online business. For all questions, write to our support.
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