S4B Crypto Contest - Season 6

Hello guys,
It's a pleasure on my path to share with you all my entries in this week's contest which is titled "S4B Crypto Contest - Season 6." which was organized by @waqarahmadshah. It is an interesting contest and I would love to drop my entry ASAP.

source

Before we go ahead I would like to invite @okere-blessing, @suboohi, and @josepha to join this contest in this community today and share their participation as well, I do hope to see and read your entries as well.

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

The price of cryptocurrency in the market is determined by the factors of demand and supply. The law of demand states that the higher the demand the higher the price and the lower the demand the lower the price. This means that if an asset has much demand in the crypto space, the price will rise more, and if the demand is less the price will not rise much.

So the same goes for the supply of the asset, when the supply is high, the price will be less and if the supply is low the price will be very high. Let's take Bitcoin for instance, the supply is less and it has much demand and for that reason, we see the price progressively moving well even though there are times when prices dip.

Prices of assets dip most times because of the buying and the selling pressure. So if people are buying an asset more within a period it means the demand is high at that moment and that will push the price up but if they are selling the price will drop.

How can individuals purchase and store cryptocurrencies?

You can purchase and store crypto in many ways among which include from an exchange, using P2P, from a friend you know, and many other means. Let me briefly explain the 3 methods listed above.

Source

For exchange, you can decide to buy from the exchange when you have money in the exchange or you can even buy with your credit card. A good example is the Roqqu exchange where you can just click on an asset and buy and options for payment will show.

P2P is another way. When trading with large exchanges like Binance, you will need to buy or sell via the P2P medium where you get a ready buyer and then you transact with the person. He gives you crypto you give him fiat.

Lastly, you can buy from a friend you know. Just meet your friend who has assets and is ready to sell. Pay him the required money and he will transfer this asset to you.

How secure are cryptocurrency transactions compared to traditional banking?

Cryptocurrency transaction is secured because of the technology behind its building. Cryptocurrency is built using blockchain technology and smart contracts hence there is hardly a mistake when it comes to transactions and the transactions here are fast and transparent.

This is not the case with the traditional bank because it is not fast and reliable and also it is not transparent because you can't see what is going on. Humans handle this transaction so the tendency to make a mistake is always there.

Can cryptocurrency be used for illegal activities like money laundering?

Money laundering is a means of stealing or getting money from people illegally. Since cryptocurrency can't be traced, it means it is one of the best means to steal. Currently, in my country, the alarming rate of fraud and other illegal activities is becoming unbearable.

Source

What people do now is to force you as the victim to send money to their address in the form of crypto is that they can not be tracked. So when kidnappers pick up anyone and they are demanding ransom, they always send their wallet address for the Ransome to be paid in form of the cryptocurrency.