Why you should know Cryptocurrency?

What Is Cryptocurrency?

A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

KEY TAKEAWAYS

1. A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.

2.Some experts believe blockchain and related technologies will disrupt many industries, including finance and law.

3.The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure.

4.The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.

Are you about to invest in cryptocurrencies?

As with any other investment, before investing in a cryptocurrency, know what the risks are and learn how to spot a scam. Here is a list of some of the things to watch out for when considering your options.

No one can guarantee that you will earn money .

Anyone who promises you a guaranteed return or dividend is probably a scammer. Just because an investment is well known or endorsed by a celebrity doesn't mean it's a good or safe thing. That goes for both cryptocurrencies and more traditional investments. Don't invest money you can't afford to lose.

Not all cryptocurrencies — or companies promoting cryptocurrencies — are created equal.

Look at the statements that the companies that are promoting cryptocurrencies are making. Search the internet by entering the name of the company and the cryptocurrency and add words like “review”, “scam” or “complaint”.

How to pay with a cryptocurrency

If you are considering using a cryptocurrency to make a payment, please know that there are important differences between paying with a cryptocurrency and paying with traditional methods.

When you pay with cryptocurrency, you don't have the same legal protections .

If something goes wrong, credit cards and debit cards have legal protections. For example, if you have to dispute a purchase, your credit card company has a process to help you get your money back. Generally, cryptocurrency payments are irreversible. Once you pay with a cryptocurrency, you can only get your money back if the seller sends it back to you.

Before you buy something with cryptocurrency, find out the seller's reputation and address, and how to contact them if there is a problem.

Refunds may not be in cryptocurrency .

If you are offered refunds, find out if they will be in cryptocurrency, US dollars, or another currency. And what will be the amount of your refund? The value of a cryptocurrency is constantly changing. Before you buy anything, find out how the seller calculates refunds.

Some of the information is likely to be public .

Although cryptocurrency transactions are anonymous, transactions can be posted to a public ledger, such as a Bitcoin blockchain. A blockchain is a public list of records that shows when someone transacts cryptocurrency. Depending on the cryptocurrency, the information added to the blockchain may include data such as the amount of the transaction. The information may also include the sender's and receiver's wallet or wallet addresses — a long string of numbers and letters linked to a digital wallet or wallet that stores cryptocurrency. Both data, the amount of the transaction and the addresses of the wallet or wallet could be used to identify the people who are using it.

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