A cryptocurrency or cryptocurrency (Saxon cryptocurrency) is a virtual currency that is used to exchange goods and services via an electronic transaction system without the intervention of an intermediary. The first cryptocurrency that started with trading was Bitcoin in 2009 and since then much more have surfaced, along with other functions such as Litecoin (Wiki), Ripple, Dogecoin and others.
How to use cryptocurrency
It is straightforward for ordinary people to use this digital currency. Just follow the steps below:
- You need a digital wallet (of course to save the coin)
- Use the wallet to create unique public addresses (allows you to receive the currency)
- Use public addresses to transfer money to or from the wallet
A cryptocurrency wallet is nothing more than software that can store both private and public keys. Also, it can also communicate with different blockchains, allowing users to send and receive digital currency while keeping track of their balance.
The operation of the digital wallet
Unlike the traditional wallets that we have in our wallets, digital wallets do not store any money. The concept of blockchain is so well associated with cryptocurrency that currencies are never stored in a particular location. They also exist nowhere in the form of money or physical money. Only your transactions data is stored in the blockchain nothing else.
Why use cryptocurrency?
One of the main features of these currencies is the fact that they are safe and offer a level of anonymity that you can not find anywhere else. No transaction can be reversed or simulated. This is by far the biggest reason to consider using them.
The costs for this type of currency are also quite low, making it a very reliable option compared to the conventional currency. Because they are decentralized, they are accessible to everyone, unlike banks where accounts are only open with permission.