What Is a Cryptocurrency and Why Should I Use It?

What Is a Cryptocurrency and Why Should I Use It?

by February 8, 2021

A cryptocurrency is a digital currency, which can be used to buy various services.

It tries to secure online transactions by using an online ledger with strong cryptography. Most people, who use this currency, do that because of the trading for profit possibility. You can think about it like casino chips. If you want to access a service that some company provides, you will have to exchange real money for cryptocurrency. Cryptocurrencies work by using technology, which is called the blockchain. This technology is great because of its security. Blockchain has spread across lots of computers, and it records transactions.

What are some of the best cryptocurrencies by market capitalization? There are loads of them, such as Bitcoin, Ethereum, Litecoin, XRP, Tether, Polkadot, Cardano, Chainlink, Binance Coin, Bitcoin Cash. If you want to buy one of them, you might need an online app: in which you can hold your currency. Basically, you should create an account, and then you can transfer real money to buy cryptocurrencies of your choice.

cryptocurrency

Photo by Roger Brown from Pexels

The biggest question is probably why should you use it? Cryptocurrency has a lot of advantages compared to usual payment methods. For example, it has low fees. Also, with cryptocurrency, you can do micro-transactions and irreversible payments. Some of the supporters say that it is way more secure than usual payment methods, and a lot of people believe that some cryptocurrencies, such as Bitcoin, might be the currency of the future. Because of that, they are trying to buy them now, before it becomes more valuable.



Choosing a cryptocurrency exchange might be difficult. You should try to do some research if the platform you are choosing is secure. Transactions fees also differ across various exchanges, which is very important when selecting a cryptocurrency exchange. Some of them offer fees with a discount. That might happen when the exchanges use their own token to complete transactions. You might consider a lot of different things before choosing the only one. Don‘t be scared to sign-up for several various exchanges and try them all. They are all very different and have diverse ways of building security precautions, their network, and user experience. You might even ask a friend if he uses it and get some advice.

So, if you‘re ready to accept crypto, you should choose the one you like the most and buy it. There is no better time than now.

 

Featured image credit: Photo by Karolina Grabowska from Pexels

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