Cryptocurrencies have been in the focus of interest of many who want to invest money and earn extra money for the last 10 years. Fortunately, trading cryptocurrencies has never been easier, and practically everything can be done from your smartphone, with a little help from mobile applications.
What are cryptocurrencies?
Cryptocurrencies are virtual money that has value, but they only exist in digital form. Another thing that makes them different from fiat currencies is that they are decentralized, which means there is no central authority. Because they are based on the blockchain principle, they are very safe to use and there is no way to counterfeit.
They are also very reliable because transactions do not require a third party. A key feature of this chain of blocks is the fact that it is not located in one place; it is completely decentralized, and anyone who owns a cryptocurrency actually has their own copy of the general ledger that is synchronized among all the computers in the crypto network.
It is the computers in the network that are important for the survival of the chain itself because the whole system is made up of computers connected to the network, which confirm a set of transactions carried out in the blockchain.
What cryptocurrencies are there?
The exact number of cryptocurrencies is not known, but it is estimated that there are more than a thousand, and new ones are still emerging. Even if you don’t know much about digital money, you’ve probably heard of one currency – bitcoin. Bitcoin was created by a group of people under the pseudonym Satoshi Nakamoto 13 years ago. At the very beginning, this currency was worthless and amounted to only 0.03 dollars.
In that period, it was considered that it would be successful if it equaled the US dollar and that it would then reach its maximum. After more than 10 years, we are witnessing that bitcoin has long exceeded the value of the dollar and is currently more than $ 60,000! Although other currencies do not have nearly this value, they have gained their audience. Ethereum, Litecoin, Bitcoin Cash, Ripple, Altcoin, and many others are common choices for beginners.
What are the advantages of cryptocurrencies?
There are many benefits to using and trading cryptocurrencies.
First of all, there is transparency and neutrality. Due to the blockchain, once the transaction is completed and recorded, it cannot change. Every single transaction, as well as every information related to it, is always available to everyone in the blockchain. Transactions are available for verification at any time and to anyone. The Bitcoin protocol is encrypted, so no person or organization can manipulate it, but that is where the biggest security feature lies.
Inflation resistance
Due to price changes, standard money experiences inflation, which is not the case with cryptocurrencies. While government organizations and banks are constantly printing money, with cryptocurrencies this is not possible because there are a certain number of them and it is immutable.
Portability
Large amounts of money or gold are not very convenient to store
– you need a lot of space, not to mention portability. With cryptocurrencies, you act like all your money is on your bank card
– it’s available to you whenever you want, even via your mobile phone.
Security and control
Because digital currency users control their transactions, it helps to maintain security. In other words, no one can withdraw an account from your account without you knowing and approving it.
Of course, like everything else in life, cryptocurrencies have flaws.
You cannot get them back if you lose them
If there is a loss of data on the Internet or they simply disappear from your account under the influence of some malicious software – you can say goodbye to your money because it has gone for nothing. Unlike banks that give you coverage in a case of a security vulnerability like hacking or stolen credit cards, cryptocurrencies do not they can return if they are lost.
Transactions cannot be tracked
This is something that makes cryptocurrencies ideal for criminal activities. This is precisely the reason why some countries do not like them and why they are not legal in some countries of the world.
Which countries are not friendly to cryptocurrencies?
As we have said, in many countries the Government still does not have regulations for them, but in countries such as Morocco, Bangladesh, and Ecuador their use is completely banned.
Which countries are crypto-friendly?
Cryptocurrencies provide users with faster and cheaper services compared to traditional currencies Eastern countries are more closed in terms of the popularity of bitcoin and other currencies. Currently, Russia is the largest country where this money is legal.
It is also well received in North and West America. As for the Middle East, the situation is different – while in Iraq, Iran, and Turkey it is legal, in Afghanistan, Pakistan, Saudi Arabia, and
Egypt they have different degrees of restrictions on cryptocurrencies. In Japan, India, and developed European countries, there is a growing use of cryptocurrencies, primarily bitcoin. Bitcoin can be used to pay for various services around the world and to transfer money quickly without intermediaries and transaction costs. This cryptocurrency can be used to pay for certain hotels, IT services, restaurants, and store bills.
In the world day by day, an increasing number of hotels, shops, companies have enabled their services to be paid in this way. On techdee.com you can read more about this topic.
Final thoughts
It seems to us that the time of cryptocurrencies is yet to come. We can hear for a reason that many call them digital gold. There is a marketing battle against cryptocurrencies. It’s a public attempt to create the impression that it is a currency created to be used for different criminal activities, and in fact, the participation of cryptocurrencies in various criminal transactions is minor compared to the share of classic currencies.
