For the past few decades, the term Cryptocurrency has become a buzzword to us. Everywhere there is a discussion either for it or against it. If this constant buzz has made you interested to learn what cryptocurrency actually is then this write up can help you out.
Throughout it, you will have a basic idea of it and its operation, its types, buying and cashing out methods. In addition, we will tell you in detail whether it is legal or not and why or why not you should be a user of it.
Let’s get started!
An introduction to cryptocurrency
Cryptocurrency is basically a kind of soft money that is not produced by the central bank of any country and thus has no border restrictions. It is essentially created by a group of skilled people with a powerful computer set whom we call miners.
Unlike Euro, USD and Pound, cryptocurrency can be transferred to any corner of the world within a few minutes. There is no need to pay a huge sum of fees and no accountability to anyone.
The greatest advantage of using the currency is the capability of hiding your identity whether you’re a buyer or seller. None in the world has still been successful in tracing the cryptocurrency transactions and the makers of transactions.
What are the popular cryptocurrencies?
You will be wrong in thinking that the word cryptocurrency refers to a specific soft money. Instead, the currencies with which you can transact keeping identity hidden are referred to as cryptocurrencies.
As per a study, till September of 2021, a total of 6500 types of cryptocurrencies are floating in the online world. But, not all of them are equally popular with the users. Here follows our shortlisted cryptocurrencies for you:
How to buy cryptocurrency?
Have you already grown an interest for cryptocurrency and started thinking of buying it? Then, this is the segment for you that tells you how you can make the purchase of the desired coins in a secure and easier way.
The first thing that you need to have is a wallet. No, we are obviously not talking about a wallet of pure leather or something else. It’s basically an online app with which you must have an account first. Some of the most popular wallets in terms of security and user-friendliness are:
Amid them, Ledger Nano S and X are considered the best ever while the rest are appreciable too.
However, a wallet acts as a gateway between you and the cryptocurrencies. You can buy, sell or swap them through it.
The purchasing system of different currencies is different. You can buy some with USD while some others may require Bitcoin or any other currency.
How to cash out cryptocurrency?
Nothing to be freaked out regarding the conversion of your cryptocurrency to cash. There are several methods of doing that. Here we have listed the most popular and secure ones for you:
From online find out someone who exchanges cryptocurrency for cash. Although this method requires you pay no fees, you will have to give a certain amount to the buyer.
Most importantly, you should make sure whether the buyer/seller is authentic or not. And, never make a large exchange in this system.
There are apps like PayPal, Venmo etc. that lets you find a cryptocurrency buyer more easily while securing the exchange far more effectively.
Having an account with Binance, Bitfinex or Kraken, you can buy/sell your currency with a nominal fee.
Apart from the mentioned ones there are many more options available for you such as OTC trading and cryptocurrency ATM. The choice is up to you, we just introduced you.
Is the use of cryptocurrency lawful?
If you ask us one most problematic issue with cryptocurrencies then our first and probably the only answer will be - it’s still not permitted in many of the countries. Therefore, you are always bound to use it secretly.
But, the good news is that the governments of some countries have already realized that cryptocurrency is going to be the currency of the future. That’s why, a number of countries including the USA, El Salvador, Australia, Canada have already given official permission to cryptocurrency.
And, you will be glad to learn that there are already 5000 ATM booths all over the 76 countries that allow you to cash out cryptocurrencies.
The number is constantly increasing and you can keep a hope that the days are not far away when no other currencies rather than crypto will rule over the world.
Why or why not to use cryptocurrency?
You should use it for the following reasons:
Transparent: Every of the currency users can check the live transactions and apart from them no third party has access
Secure:None can trace your identity; even the buyers and sellers never know one another. Moreover, everyone has a unique pass code, which is so long that none can guess to hack the account or transaction.
No inflation: The creation of cryptocurrency isn’t as easy as it is for hard money. Thereby, the number of cryptocurrency is limited, which pulls out the risk of inflation.
No commission:For every transaction you are not bound to pay a certain amount of fee that is cost-effective.
Again, the reasons for which you should avoid cryptocurrency are:
Unstable: Although there is no risk of inflation yet the value of cryptocurrency rises and drops significantly. A single rise can make you a king while a single fall can make you go bankrupt.
Lack of information: You never know who is there in the driving seat of your currency. It is not possible to predict the probable rise or fall like the stock market. And, most pathetically, you will never know why and when the value rises or falls.
To conclude, cryptocurrency just like every other thing of the world isn’t an unmixed blessing. It does have merits and demerits at a time. Now, whether you will be a user of it or not depends on your personal choice and convenience. But, before you make up your mind to use it, make sure that you have learnt every pros and cons related to it.