S4B Crypto Contest - Season 6

Hi everyone,
It's another day of the week and I'm delighted to participate in this contest today organized by @waqarahmadshah which talks about S4B Crypto Contest - Season 6 I will be making my entry below so read through it and drop your valuable comment as it will be appreciated.

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How is the price of a cryptocurrency determined in the market?

Price of cryptocurrency is determined in the market when there is volatility in the market. Volatility talks about the up and down movement of the price of an asset in the market. Crypto currency prices are not fixed hence it continues fluctuating and this fluctuations is caused by the demand and supply of the asset.

When the demand of for the assets or crypto currency is high, then the price will go upward. This means for price of the asset to raise there must be much buying pressure. Similarly, for the price of the asset to fall there must be selling pressure.

So when we see the price of the asset declining or going downward it means that the selling pressure is much. Prices of assets or cryptocurrency is therefored determined when we see either buying or selling pressure.

How can individuals purchase and store cryptocurrencies?

There are many ways one can purchase and store cryptocurrency depending on where you find yourself. As a Nigerian, I can buy and store asset from a few exchange platform here in Nigeria.

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I can also buy from a friend or use the P2P medium through Binance or any other exchange platform. So often we can always use different means as such to buy and then store our cryptocurrency in our wallets or exchanges.

When you buy you either use your credit card to make the payment or you pay via your country fiat. The most important thing is to get someone who is ready to sell or to purchase from an exchange that has the crypto asset you need.

How secure are cryptocurrency transactions compared to traditional banking?

Cryptocurrency transaction are very secured compared to traditional bank because it is very transparent and also very fast compared to traditional bank. Whenever you make a transaction using crypto, anyone anywhere in the world can see it.

Also it is very fast when compared to traditional banking that may require lots of time. Here, the charges is less and you don't need any intermediary for your transaction aside the exchange which uses the smart contract to perform it.

So since there is no third part you will agree with me that the transaction will be more safe and secured as third party has ways of influencing the transactions of an asset making it unsafe for their customers.

Can cryptocurrency be used for illegal activities like money laundering?

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Yes, cryptocurrency just like normal fiat can use for illegal activities like money laundering. This is the main reason why many government keep fighting cryptocurrency because of this illegal activities that people use it for.

There are other illegal activities which cryptocurrency can be used for as well and this is the main reason why the government is pushing towards regularizing the crypto space.

But aside that, cryptocurrency are also used for good intention as well.

I want to invite @dove11, @josepha, @drhira to join the contest in this community and share their entry participation.