S4B Crypto Contest - Season 6

If we talk about how people buy and store cryptocurrencies, most people use online cryptocurrency exchanges like Binance, Coinbase or Kraken. By creating an account on these exchanges, users can deposit funds from their bank account, have the option of P2P or even express, and then buy cryptocurrencies with that money.

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To store cryptocurrency, people use wallets. I also recommend wallets as they are safer than exchanges. Any coin can get delisted at any time which can cause loss to the buyer. These wallets are in digital or hardware form in which cryptocurrencies are stored. The most popular and widely used wallets include mobile wallets (like Trust Wallet) which I use myself, desktop wallets (like Exodus) which I have not used myself but keep information about, and similarly hardware wallets (like Ledger Nano S) included.

_{Sacrenshort taken out from Trust wallet and edit through PicsArt}

How secure are cryptocurrency transactions compared to traditional banking?

If you are talking about security, in my view, cryptocurrency transactions, like Bitcoin or Ethereum transactions are more secure because they are based on blockchain technology. Blockchain is a decentralized ledger which secures every transaction with cryptographic techniques. If I want you to understand in simple words, what I mean is that the data of every transaction is stored securely within the chain and nodes of the network are used to verify it.

And on the other hand, if we talk about transactions in traditional banking, they are less safe than Blockchain transactions because these transactions are processed through a central authority or a bank. There is a central database in which customer data and transactions are stored. But in this centralized approach, if a hacker or an insider can gain access from inside the bank, the data can be manipulated or compromised, hence cryptocurrency transactions are safer with this approach.

And apart from this, I would like to tell you that in cryptocurrency transactions there is a public record of every transaction which every user can see. Or this transparency increases security a lot, besides this hacking attempts can be stopped due to the use of cryptographic techniques. And I have understood the logic behind all this but first I would like to tell you that overall cryptocurrency transactions are more secure than traditional banking due to decentralized nature and cryptographic security measures.

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Can cryptocurrency be used for illegal activities like money laundering?

Of course, if we talk about illegal activities or black money, then cryptocurrency can be used for illegal laws like having money laundering issues .And the reason for this is that cryptocurrency is available all over the world and it is known that anyone can do cryptocurrency transactions from any country and easily transfer cryptocurrencies to another country.

But blockchain analysis tools are getting better day by day so that blind legal transactions can be brought into view, due to which people indulge in money laundering. Regulatory measures are also being implemented so that all illegal activities involving cryptocurrency can be minimized and identified.

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I'm Inviting @steemdoctor1, @sahmie @chasad75 @khadija-gul
for participate in this contest.

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