Money is vital for facilitating the exchange of goods. It has evolved from commodity money. From metallic money, paper money, plastic money to now digital currency. This medium of currency is now used more and more in our day to day life.
The advanced encryption techniques have developed Cryptocurrency as a digital currency. The increase in the number of crypto exchange websites has enabled quick payments. Take a look at these frequently asked questions to get the complete guide on this new form of exchange.
What is Digital Currency?
A cryptocurrency refers to a digital or virtual form of currencysecured by cryptography. These are based on blockchain technology.
What can we do with Cryptocurrency?
They are used for fast payments and does not involve transaction fees. It can be bought and stored in an online wallet and on hardware. It can be kept as a capital investment in the expectation that its value will rise.
Can only the government issue it?
It is not necessary that cryptocurrencies can be issued by the government only. Any company can issue their virtual money. It majorly depends on the policies of the government and may differ accordingly.
What are the top advantages of using it?
This new form of currency should be preferred over traditional payment methods. Some of its distinctive advantages are secure copayment method, lower transaction fees, fraud reduction, instant payments, and gives new business opportunities.
Is it a secure trade medium?
Digital money regulated and issued by the government is safer. Although the payment that many firms issue isn’t as secure as money in the bank. If the organization that issued the currency gets hacked or your money gets stolen, then the government can’t help you in getting the money back.
Could we transform our capital into digital assets?
Sure, one can invest in digital money very quickly. Because the crypto-currency valuation varies every hour, the investment can be worth it. The digital currency’s value is so unpredictable it can not be sure it would go up or down.
How to pick the best platform for crypto exchange?
There are a variety of businesses in the virtual currency that assert a guaranteed return on investment. Celebrity endorsements do not imply that the website is either good or safe. Check online about the website ratings, scams, or complaints against the firms before spending your money that you can’t afford to lose.
What are the legal rights against the frauds?
When it comes to the Cryptocurrency, you do not enjoy the same legal protections as bank money. Virtual-money rules and laws are not that powerful. In the case of scams, you can’t get the money back unless the recipient sends you back.
What about security issues?
These transactions generally not show the details of the sender and receiver. However, the information added by both parties at the time of the trade will be shown in the accounts. The data will include names of parties, wallet addresses, amount, and other general details.