Many would agree if I say that the market for cryptocurrency is volatile and quite risky. Even so, there are still a lot of people and investors alike who are drawn to it because the ROI justify the risks involved. If you too want to give it a shot but wondering whether it is something that fits you or not, then the questions below may help you out.
What Exactly is Cryptocurrency?
Cryptocurrencies are similar to digital money, which can be used for a number of things such as:
- Making payments
One very popular example of cryptocurrency is Bitcoin, which at the same time was the biggest and most popular. It’s created back in 2009 and has been the most accepted coin since then.
All crypto uses blockchain technology or a shared public record of transactions. Blockchain could be used in creating and tracking new kind of digital token, to which is made and shared as per the rules that have been agreed on by the network.
What’s a Bitcoin?
If a person has .5 Bitcoin in their digital wallet, that doesn’t indicate that there’s a corresponding half somewhere else.
Having Bitcoin implies that you and other computers in the Bitcoin network came to an agreement. This agreement states that yours was made by a legitimate miner and passed through series of legit transactions.