Cryptocurrencies or cryptocurrencies, also known as cryptocurrencies, virtual currencies, are a type of digital assets. Or simply put, it is similar to normal money but only digital. So there will be no bills or coins for you to bring. Cryptocurrency acts as a medium of exchange through the Internet, using cryptographic functions to perform financial transactions. The core element of cryptocurrencies is Blockchain technology. This technology helps cryptocurrencies achieve decentralization, transparency and immutability.
What is cryptocurrency different from conventional money?
- Digital currency affords users complete anonymity. Every time you swipe your credit or debit card, your personal information is attached, and businesses, banks and governments can use this data to track your activities. Cryptocurrency transactions carry no personal information (unless you add it yourself). This privacy also dramatically decreases the chances of identity theft.
- Constant access to your accounts. Traditional accounts can be garnished or frozen, but since digital currency exists outside the regulations and laws that allow this to happen, it’s very rare to be unable to access your coins.
There are currently about 3000 currencies according to Coinmarketcap, Each has its own good points.
Bitcoin is the oldest cryptocurrency.
Ethereum has been used to run applications and smart contracts.
Or Ripple (XRP) with fast and cheap transaction speed
Where is the cryptocurrency stored? Of course there is an electronic wallet to save money.
Currently, there are two main types of wallets: cold wallets and hot wallets
Cold wallets: Currently, cold wallets are the safest place for you to store money. It is less risky than hot wallets. Currently there are the most popular cold wallets today such as Ledger, Trezor, KeepKey.
Hot wallet: Security is also good. But you can still lose money if a virus infection or hacker attacks to get your information. Currently there are some hot wallets such as Atomic, Exodus, Jaxx, Blockchain.
