Cryptocurrency has been around since 2008, but there are still a lot of things many people don’t know about it. Before you decide to buy Bitcoin or another type of virtual currency, it’s a good idea to familiarize yourself with a few of the basics. Cryptocurrency is essentially digital money that was designed to be used over the Internet.
You can use it for making purchases, investments, and even for trading purposes. Since the “money” is not issued by a government agency, anyone can buy or sell cryptocurrency. Here are seven basic pieces of information about cryptocurrency that you should know:
It Is Completely Secure
So, how is cryptocurrency secure if it isn’t government-issued? All cryptocurrency transactions are vetted by blockchain, which is a unique technology that works 24/7 to reverify every record of every transaction that was ever made using that particular currency.
Blockchain isn’t like ledgers in a bank. Instead, a crypto blockchain gets distributed amongst the entire network of anyone who is participating in that digital currency. It took decades for computer scientists and mathematicians to develop blockchain technology, and it works like a charm.
It Is Completely Safe
If you decide to buy Bitcoin, you’ll be happy to know that the network that powers Bitcoin has never been hacked. The main reasons why cryptocurrencies are safe are the same things that make them so unique; namely, that the systems do not require permissions and the core software is an open-source software.
What this means in practical terms is there have been tons of cryptographers and computer scientists who have examined every single aspect of the networks, which includes making them more secure than ever.
It Is Completely Private
If you pay for something with a credit card, the seller always gets some of your personal information in return. With cryptocurrency, there is no need for you to provide any unnecessary personal information to the merchant. This goes a long way in keeping that information private, especially since it means that your information will never be shared with third parties such as advertisers, banks, payment services, etc.
And the lack of sensitive information being sent over the Internet means that the risks of your identity being stolen or your financial information being compromised is practically zero.
It Offers Complete Transparency
The transactions of all cryptocurrencies, including Bitcoin, become public information regardless of who made the transactions. In simple terms, this means no one can manipulate the transactions or adjust the rules in the middle of the game.
Anyone can see all of these transactions any time they like, which makes it much less likely that anyone will try and manipulate it in some way. For all practical purposes, transparency equals safety and privacy with your cryptocurrency transactions.
It Is Portable
When you buy Bitcoin or another cryptocurrency, it is never tied to either the government or to any type of bank or financial institution. What this means is simple: your cryptocurrency is available to you regardless of where you are in the world and regardless of what happens to any of the major intermediaries of the global finance system. This is a big advantage in today’s very mobile and safety-conscious world.
It Is Here to Stay
It seems that every day, we are finding new and better ways to use cryptocurrency. Most, if not all, experts seem to agree that cryptocurrency is here to stay and that it’s only going to get bigger in popularity and in the ways it can be used. Cryptocurrency also has the potential to address problems in our current financial system, including identity theft, high fees, and extreme economic inequality.
The technology that powers these digital monies is the same technology we will be able to use to improve or create everything from supply chains to a decentralized Internet. The possibilities, as they say, are endless.
It Can Be Used to Make Investments
Many people are now buying and selling cryptocurrencies, and the process is a lot easier than you think. Many companies offer rewards just for having the currency. Even better, you can get started with as little as $25 worth of cryptocurrency in many instances. More and more people, in fact, are adding digital currencies to their investment portfolios, so it’s something to look into if you’re interested.