How cryptocurrency is different from Fiat Currency:
Cryptocurrencies are a form of money that is used digitally specially designed to take benefits of the web of the Internet. Instead of depending on a financial institution to assurance and verify transactions, cryptocurrency transactions are authenticated by the computers, which are called mining setups, of the users of the particular network called miners. Computers that authenticate transactions generally receive a small amount of reward in the form of the same currency they mine. The process of receiving rewards in return authenticating transactions is called “mining,” and it is the primary means of generating new currency. For different currencies, mining works differently.
Key advantages of cryptocurrency:
Because cryptocurrencies are entirely in the form of digital codes, they can be used in a way that conventional currency cannot; They are mainly used like digital cash. Unlike bank-issued credit or debit cards, you don’t need a bank account or good credit report to use cryptocurrencies, but you can use them to buy goods and services from ”an increasingly wide selection of retailers and individuals. For example, Microsoft and Amazon accept Bitcoin as a payment. Generally, there are very low transaction charges for almost all transactions, but they are generally much lower than interest and credit card processing fees. Key advantages of cryptocurrencies are:
- It can be used digitally.
- The Internet is needed for the transaction.
- No one owns cryptocurrency, which Means its completely decentralized.
- No boundaries like countries.
- Less time is taken for each transaction.
- Globally accepted.
- Universally the same value.
- Sender or receiver identity has not revealed.
Cryptocurrencies can be converted at lightning speed or used to represent things that are not normally currencies, such as domain names or consumer goods. Depending on the currency used, it is also possible to anonymize transactions, transforming cryptocurrencies into a form of discreet online cash. Most importantly, cryptocurrencies can be sent anywhere in the world, almost instantaneously, allowing users to deal with each other directly over the Internet, rather than through a third-party financial institution, paying fees of currency conversion or while waiting for a bank to release funds.
Although cryptocurrencies are not completely safe from sharp practice or theft, they are generally safe to use and difficult to steal for mischievous hackers. As with cash, you will need to take certain safe-guards to protect your assets. For one thing, you will want to encrypt your wallet with a very strong password and make regular backups, and it is a good idea to keep the backup and a written copy of your password in a remote location. Never give your password or wallet to someone you don’t trust and keep your wallet software up to date at all times. Like cash, if it is lost, damaged, or stolen, you cannot recover the funds. It’s also a good idea to keep most of your money offline, either in a “paper” wallet or on a storage device that can be disconnected from the Internet when not in use.
If you want to know the history of cryptocurrency click here
To know about best Indian crypto exchanges by an Indian: click here
To want to know more about advantages of cryptocurrency click here
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