What is Cryptocurrency? Everything you need to know

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What is Cryptocurrency?
What is Cryptocurrency? Everything you need to know

What is Cryptocurrency? Cryptocurrency is a currency that is digital or virtual that makes use of the cryptography for the purpose of security. This is like a technology which is difficult for counterfeiting because of the feature of security in it. Basically, it is a digital currency that is created and stored in the block chains electronically. In this era of hacking and crimes, securing the currency is very complicated.

Hence, the use of cryptocurrency can never go wrong because of the use of encryption technique. Encryption is one of the best security features that is being used by most of the large organizations as well for the purpose of security. The use of encryption technique in the cryptocurrency is helpful in avoiding any sort of risk that is associated with the hacking or cybercrime. There is no any form associated with this technology and it is not even redeemable like gold.

Cryptocurrency is nor under the government regulation and is not even issued by the banks like central. It doesn’t enjoy the similar form of stability when comparing to the daily currencies that are physical. Most of the people are making use of this technology nowadays for the purpose of shopping online or for the transactions of the money. The first cryptocurrency which was used is bitcoin.

Also read about: Things you need to know about bitcoin

It is only because of the bitcoin that de-facto crypto came up with another major benefit of it. There are countless websites available nowadays which consents for converting the cryptocurrency to the actual money and transferring it directly to the bank accounts is vice versa with it. There is one major reason that people are using it so constantly because no government or banks have the access to control it.

Pros of Cryptocurrency

The pros of the technology are considered as the plethora. This is not only good for the business owners but also for the buyer as well. Do you know the other benefits of this advanced technology used for the money? No, don’t worry we will be providing you the appropriate details associated with the pros.

Here are the pros of technology:

1What is Cryptocurrency?: Easy access:

To know about what is cryptocurrency? Let’s first discuss about the pros of cryptocurrency. These days carrying cash in the pocket is the major hassle for the people. But, with the coming of this technology, this problem is almost gone. This technology is instantly available to the general public. There is no any sort of restriction who can use it as this is available for anyone.

This technology is the decentralized operation so the investors from across the world can have the simple access. You can find different projects that are trying for raising the funds with the use of cryptocurrency. People who have an idea of making the online fund transfers can become the major segment of projects like these.

2Quick and easy payments:

Quick and easy payment leads to several problems for the common public. What is cryptocurrency? Cryptocurrency is the technology which has made such problems turn into no problem. This is helpful in making the payments very easily. It’s just the matter of few seconds or minutes with the technology to make payments anywhere and anytime. Making payments is very simple with the use of this technology because you don’t have to add any sort of extra details.

With this technology, you don’t even require to feed the particulars of credit or debit card. The only requirement for making payments with it is the wallet address of an individual or the enterprise so that money is sent to them easily. The amount is credited to the account of the receiver within the few seconds or a minute. The transfer ease and the low fees of transaction make it very convenient and desirable.

3Lower fees:

There are no fees for transaction usually for the exchanges of cryptocurrency because the miners are compensated through the network. Also, there is no any sort of fees for bitcoin or cryptocurrency for the transaction. The transaction fees are only charged when the person is engaged with the third party service for instance Coinbase. It helps in creating and maintaining the wallets of bitcoin proficiently.

The services of the technology act like PayPal works for the users of debit or credit card. The technology also offers the system of online exchange for bitcoin. PayPal doesn’t have the access for accepting or transferring the bitcoins and with cryptocurrency technology, this is the plus point.

4Identity theft:

I am assuming that these points are making the  picture of what is cryptocurrency? clear in your mind. These days one of the major problems with the use of technology is the fear of identity theft because of the hacking. As technology is advancing so the cases of hacking or cybercrimes are also raising. Most of the people fear about the theft of identity while using any technology like cryptocurrency but with this, it is not the case. This technology is designed with the integration of encryption technique.

This is one of the best security features that ensure security to the users. Basically, what happens with this technology is that if the user is not verified then it doesn’t let him/her view the information until the user’s details are not provided. So, the users of cryptocurrency don’t have to worry about the security purpose as their identity with it is completely secured and protected.

5No third party:

Another major benefit of the use of this technology is that the user is the master of their money. There is no involvement of the third party which means that you can use the money the way you want. You can transfer money or receive money with the technology easily without any sort of complexity. Hence, this technology solved many problems associated with the appropriate managing of money for the general public.

6No restrictions:

With the use of cryptocurrency technology, there is no any kind of restrictions. You can use the technology from any part of the world and the receiver can also be from any hemisphere. You can transfer the money without any kind of hassle. On the other hand, the transaction that is inter-country is very simple and easy.

Cons of Cryptocurrency:

I hope till now you have got some idea about what is cryptocurrency. Lets not see the cons of cryptocurrency. As the technology of cryptocurrency is offering several benefits to the users so there are certain cons of the technology also which needs to be identified. To offer the better understanding of the issues that are in the technology below is the description:

7Difficult to understand:

One of the major problems that are associated with the technology of cryptocurrency is that it is completely a new and unique technology so understanding it becomes little difficult. Investors most of the time invest without having an appropriate knowledge and lose the huge amount of money. So, it is important that before investing the money there should be the gathering of adequate knowledge from the different sources.

8Use is not easy:

The use of technology is difficult for the user who doesn’t have the understanding of making payments online. People who don’t have the appropriate knowledge of using it end up themselves the opening to the hacking. The use of this technology is little difficult so it is important that the person should have an adequate knowledge of using it and should think twice before using it. The appropriate understanding of using the technology is helpful in alleviating the problems like hacking efficiently.

9Not accepted widely:

The cryptocurrency technology hasn’t been accepted widely. Most of the business websites and other websites don’t accept the digital currencies. There are very few countries that have legalized the use of this technology. For them, using this technology is very impractical so before using you need to ensure that this technology is accepted at the place where you are using it. However, technology is gaining popularity but still, it would take time to complete reach the world.

10Leads to losing wallet:

There is the probability of losing your wallet with the use of this technology. If you have stored a lot of money in the digital currency form on the personal devices then it can lead to losing coins. So, it is better to integrate a strong password so that no one can use it. if the money is lost once then retrieving should not be anticipated.

11No refunds:

This is again one of the main con of using this technology because if the money is gone out of the wallet once then it is not refunded to the user. Not only this, if the money is not even used in a suitable direction than also it cannot be refunded which is one of the major drawbacks of the technology. The above cons must have give you some more idea about what is cryptocurrency?

12Conclusion:

What is cryptocurrency? The question that is mostly on many people’s tongue. The world is becoming very technological in every aspect and money is one of them. The use of one has also become technology as there is the arriving of the digital currency known as the cryptocurrency. It is gaining popularity but still, there is the need for more recognition among the users and the businesses.

To understand the technology more comprehensively, there is the discussion of technology in an appropriate manner above. Also for enhancing the understanding of the cryptocurrency, pros and the cons are also there.

 

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