WHAT IS A CRYPTOCURRENCY?
A digital or crypto-currency is an online financial “coin” that cannot be touched or felt or carried from one placed to another physically, but it can be used online and transferred from one person to another through a digital wallet online.
WHO REGULATES CRYPTOCURRENCIES?
Crypto-Currencies are not regulated by the government or financial institutions. The main platform that keeps the cryptocurrency working is called “Blockchain” and this is the backbone that keeps all financial transactions and wallet information of all users of cryptocurrencies.
WHO CAN USE A CRYPTOCURRENCY?
The usage and acceptance of a cryptocurrency does not necessarily depend on location, but on the global market value it possesses. Therefore, anyone in the world can have it and use it to transact business, as long as they can afford it.
DRAWBACKS OF CRYPTOCURRENCY
- One major disadvantage of cryptocurrency is that transactions cannot be reversed; once it is done, it is gone.
- The moment a cryptocurrency leaves your wallet, you can’t call it back again.
- Another disadvantage is that the cryptocurrency world runs anonymously.
- Cryptocurrency users are anonymous, so it’s almost impossible to figure out who is behind a certain account.
- Scammers and fraudsters often use this facelessness to cheat and steal from people.
HOW CRYPTOCURRENCY GROW ?
When a new cryptocurrency is launched, it will take some time to fully develop and gain attention, in order to attract many investors around the world and become a major stakeholder in the global cryptocurrency market.
When a cryptocurrency is newly released, it’s value will be very low and exchange rate may even be in cents ($0.01.. less than one dollar); but as more people, businesses and financial institutions begin to recognize and use it, the value and exchange rate of such cryptocurrency will gradually increase.
HOW TO INVEST IN CRYPTOCURRENCY ?
All over the world, wise people often target any newly released cryptocurrency and quickly invest in it. They usually buy as many coins or tokens as possible and preserve them till the value becomes very high and attractive, before they start selling the coins or using them to pay for goods and services.
In order to show how crypto-currencies are launched and developed into real financial assets