Finding a person who has not heard anything about cryptocurrency is difficult. Most users know that this is virtual money, and that’s it. Superficial knowledge leads to the emergence of prejudices and fears of using coins. We answer the most popular questions about cryptocurrency. We hope this helps you understand the basics.
1. Cryptocurrency Features
Cryptocurrency is a virtual asset that exists only on the Internet. The main features of the coins are:
• lack of physical fitness;
• irreversibility of the operation.
There is no one place where cryptocurrency is stored. The information is stored in the blockchain, hosted on servers worldwide.
The use of cryptocurrency is entirely confidential. When a user visits a cryptocurrency website to purchase coins, the owner’s details are not visible to anyone.
Each transaction is immediately recorded in the blockchain. Purchase and sale data cannot be erased or overwritten. That is why you should carefully check the wallet address when exchanging tokens. If you send them to the wrong address, you will not be able to return the currency.
All cryptocurrencies are code. It can not be touched or put in a regular wallet. Coins and banknotes with the symbol of Bitcoin, Ethereum, and other tokens are nothing more than a souvenir.
2. Where Can You Buy Cryptocurrency?
Buying cryptocurrency is the easiest way to get coins. There are three types of sites:
• stock market;
• p2p platform.
The first two services are the easiest way to get tokens. A cryptocurrency exchange is similar to the usual financial one. Users can buy, sell tokens, and perform all necessary operations. We advise you to pay attention to the WhiteBIT service. This is a reliable exchange with many instruments, the current exchange rate, and all available cryptocurrency pairs.
Exchangers do not store user funds but immediately send them to wallets and accounts. It is the easiest way to buy virtual coins.
The P2P platform is a cryptocurrency market where users post cryptocurrency ads. Through the service, you can sell, exchange and buy tokens.
3. Why Buy Cryptocurrency?
Cryptocurrency is bought for short-term and long-term investments. Traders actively earn on changing cryptocurrency prices.
Virtual assets are used as a payment instrument in many areas of life. Tokens are used for international payments to transfer money with a minimum commission quickly.
4. Is it True That Cryptocurrency is Illegal?
Due to the lack of a central authority, many believe cryptocurrencies are illegal. It is not. Blockchain records all information in the public domain. Personal data is not indicated, but each user can determine through which service the operation was performed. There is undoubtedly a certain percentage of the use of cryptocurrency for illegal purposes. But this is a minimal amount relative to all the tokens that are.
Many countries regulate the purchase and sale of cryptocurrencies at the legislative level. Well-known companies accept coins as payment and invest in their development. It means that the cryptocurrency is entirely legal and legitimate.
5. What Affects the Rate of Cryptocurrency?
Cryptocurrency prices change pretty quickly. The rate is influenced by the token’s popularity and users’ demand. The more people talk about a digital asset, the more they want to buy it. Accordingly, the cost of coins increases.
Also, the price is impacted by the functionality of the cryptocurrency and the total number of offers on the market. The rate depends on how easy it is to get coins.
Mahesh Kumar is a dynamic marketing consultant and tech enthusiast with a passion for driving business growth through his innovative strategies and cutting-edge technology. With 6 years of experience in the industry, he has helped numerous businesses leverage the power of digital marketing to reach their target audience, build brand awareness, and increase sales.