General idea about Cryptocurrency
Cryptocurrency is known as decentralized digital money, which you can store in a digital wallet or an exchange based on blockchain technology. There are currently over 5.500 Cryptocurrencies on the market, according to CoinMarketCap.
You might have heard one or two coins, which are popular such as Bitcoin and Ethereum. What makes Cryptocurrencies unique is they are decentralized, unlike USD, EURO, etc. You can also buy goods via Cryptocurrency, but as a reminder, not all websites do support Cryptocurrency purchases, but in the future, without a doubt, this will be possible.
What is Fiat currency?
Fiat currencies are government-based and centralized currencies, such as USD, EURO, or any other country’s currency; we call these Fiat currencies. The most modern so-called paper currencies are Fiat Currency, and the country’s local people are actively using them. Also, you can buy Cryptocurrencies with Fiat Currency. Let’s not forget that.
How does Cryptocurrency work?
While it is a digital asset, Cryptocurrencies are Encrypted & Decentralized, unlike Fiat currencies. Decentralized Cryptocurrency means that there is no central authority to control the value of the coin. With that being said, while The government is printing fiat currencies for demand, some Cryptocurrencies are limited, such as Bitcoin; they do not print the Cryptocurrency to keep its value higher.
What is Blockchain?
Blockchain makes it easier to control and save assets; it is shared with everyone but can not be edited or changed. Anything precious can be tracked on the Blockchain network. For the physical world, this is done via bank employees, so there is a fee that we pay extra to check any information, not even mentioning employees can make mistakes.
But on the other side, with Blockchain there is no chance of fail because it is not controlled by a human, everything is automated, much more secure, and much faster than the physical banking system. Thinking of this as a digital book that can not be changed, and it can only be seen by the people who have access to it, Makes everything better and secure than the banking system.
How to invest in Cryptocurrency?
Cryptocurrency investments can be done on Crypto Exchange websites or Peer to Peer networks. There is always a fee for buying a Cryptocurrency, so choose the Exchange or Network according to the fee prices & how secure it is. The size of the fee depends on the size of the purchase. There are some Exchange websites such as Binance, Kraken, Coinbase, and so on. Among these exchanges, Binance is the most popular and largest one.