iTeach Contest: How Cryptocurrency differs from Traditional Currency .

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Good Evening

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Hopefully, you all will be well by the grace and mercy of Almighty Allah. Welcome to my today's article. I am here to participate in the contest organized in the steem4nigeria community and the topic assigned for the competition is How cryptocurrency differs from the traditional currency. So let's begin...

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Introduction to cryptocurrencey

Cryptocurrency is the digital form of currency we use or store in our wallets for trading to gain profits and buy and sell different goods and things in daily life. With the progress in technology, there are many improvements and amendments occurring in every field in the financial world cryptocurrency is a great improvement.

In the crypto world, there are many coins introduced for the regard of trading and there are so many wallets also that are used to store the currencies or to trade them in the market. according to the bullying and bearish trends of the market we can trade the coins in the crypto world and can earn our profits.

Technology used in cryptocurrency and its working

Cryptocurrency works on the principles of blockchain technology. The blockchain is actually a distributed public ledger that works without the involvement of any central authority. The basic concept behind the working of cryptocurrency is blockchain technology.

The cryptographic elements are used to secure the blockchain and these elements are collectively known as the key features of the blockchain to make the cryptocurrency, a reliable source of payments and purchases worldwide.

Usage of cryptocurrency

A cryptocurrency is a digital form of currency that can be used for three basic purposes. These three purposes are discussed in the form of the below key points.

• Cryptocurrency can be used as the payment method for various online purchases. We can use it for easy worldwide transactions. There is no involvement of any government so we can also adopt it in our businesses as well.

• Second important use of cryptocurrency is as a source of income. The market of cryptocurrency is very much volatile. At the first moment, it is a very high price but at the other moment, it is comparatively low. So, we can take advantage of these fluctuations in the prices.

• The third use of cryptocurrency is the storage of money. We can store the crypto assets for the long term as a source of savings. Conventionally, it was done by storing physical assets like gold, lands, and physical money as well. But, we can now we can use the crypto assets for this purpose.

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Difference between Cryptocurrencey and Fait currencey

Fiat currency is the physical form of currency that we currently use in our lives for every purchase and sale. There are many points that differentiate fiat currency from cryptocurrency.

Fait currencey	Crypto Currency
It is the physical form of the currency and we store them in our wallets for the sake of use in our daily purposes.	It is the digital form of currency stored in digital wallets and we can access them in our mobiles and wallets in the presence of the internet.
Fiat currency is stored in the banks means the third party is involved in the transactions we made. We need to go to the banks or the center of the money to access our assets and make worldwide transactions.	In the case of cryptocurrency most of the currencies are linked to the decentralized blockchain and we can easily make national or international transactions with just one click.
The price of the fiat currency is fixed mostly and the change in the market price did not occur constantly.	The market values in the crypto world keep changing from bullish to bearish trends which help the investors to trade and earn good profits.

Currencey That I prefer and Why?

I prefer or like cryptocurrency due to many reasons firstly it has made usage and transactions easier without the high paying charges. Secondly, we can access the currency at any time we want in the presence of our mobiles and buy or sell the coins to earn profits. This fact has decreased the difficulty to go to the banks to make transactions and bear the crowdedness in the banks. Thirdly there is more security in the cryptocurrency as compared to the physical one. So due to these points, I prefer cryptocurrency.

Advice about the cryptocurrency

The evolution of crypto in the financial world is really great progress along with its advantages there are some disadvantages also that we should keep in mind before trading or using cryptocurrency. First of all, We should not invest a lot of money at the start of trading the currency that will be risky and may cause the loss of assets. Proper research is necessary before investing in any kind of coin.

Keep the keys and passwords safe so that they can help you to prevent any kind of scams or loss. Store your assets in trusted wallets. So some points we should keep in mind about digital currency.

The adoption of cryptocurrency will be a great step toward successful finance and its expected that in the upcoming era finance will be shifted towards digital finance if the government of different countries accepts its adoption.

Conclusion

Cryptocurrencey is the electronic currencey that has take the great changes in the financial world with its adoption.Fait currencey on the other hand is the physical form of currencey there are many differences in them as I explained above.

So that was all from my side about the topic. I hope that you all will like to read the post.Thanks for the visit.

Special Mentions
@fredquantum

Regards:@mateenfatima