The article briefly discusses the concept, main characteristics and advantages of cryptocurrency.
Traditional money, known to everyone and regulated by banking rules, has not been the only means of payment and investment tool in recent years. More than a decade ago, so-called cryptocurrencies entered the market. What is cryptocurrency? Will it be able to replace cash in the future? Where can I buy it?
Cryptocurrencies — what is it?
Cryptocurrency is a virtual coin that is not regulated by either banking systems or state tax regulations. Cryptocurrency is an international financial instrument. It is a kind of accounting system based on cryptography. The ownership status is expressed by the system in numbers. It stores information in a specific contractual terms. The owner's data is encrypted with a special individual key that allows you to access the so-called wallet.
The main feature of cryptocurrencies is decentralization. This virtual money, which operates in the world of blockchains, is in no way regulated by organizations. On the one hand, this allows you to make a profit above the average, but on the other hand, it raises concerns for some users.
Cryptocurrencies are characterized by instability and unpredictability, sometimes bringing large profits, and sometimes huge losses for people who invest in them. In the market of some cryptocurrencies, there is sometimes a huge daily volatility in the value and huge fluctuations in the exchange rate. For this reason, unlike traditional currencies, it is difficult for experts to determine the direction of movement of the cryptocurrency, and reliably predict the rate.
For most people, this virtual money has an investment function. Cryptocurrencies are also sometimes used as a means of payment. Various types of companies, such as online stores or food broker portals, allow their customers to pay for orders using cryptocurrencies. The most famous cryptocurrency in the world is bitcoin.
Where to buy cryptocurrency?
There are many cryptocurrency exchanges on the Internet where you can create an account, open your individual wallet, and start trading cryptocurrencies. Some of these types of online exchange offices allow you to trade only a few types of cryptocurrencies (some exchanges offer trading of several dozen or even more than 100 different cryptocurrencies).