What is Cryptocurrency?

what is cryptocurrency

What is cryptocurrency 

It is digital money or virtual currency. This currency has no physical existence. You can use this currency online. It is a decentralized currency. There is no need for an intermediate organization like a bank to regulate this currency. Bitcoin is a cryptocurrency and there are thousands of cryptocurrencies available online.

It is a quick way to get a payment or paid others to avoid fees or any delay. It is an easy way to invest or transfer. You can buy cryptocurrencies with your debit or credit card. You can generate cryptocurrency through mining. It is a good way to get profit by mining cryptocurrencies. You can save your digital currencies in a digital wallet or on your computer or any hardware.

There are many scams in the online market related to cryptocurrencies. If I say, it is a little bit insecure way for transactions but it is hoped that in near future it may be a more secure way of payment.  

There are some issues related to cryptocurrencies as given below;

  • This virtual currency is not backed by any country. So this virtual currency stored in a digital wallet is not as protective as the dollar stored in any bank account. Companies create a digital wallet and if the company is out of business then it may be possible that you can lose your cryptocurrency. Government can’t help in this regard to restoring your cryptocurrencies. 
  • The value of cryptocurrency is constantly changing. It may possible your investment in thousands of dollars, can down to hundreds of dollars due to the changes in the value of cryptocurrencies
  • Scammers are a big problem in cryptocurrencies. It is surely not a safe or secure currency, if someone says it will give you constantly big profit then it will be doubtful. 
  • A credit card or debit card has some legal protection. If something goes wrong with your credit card or debit card then the company helps you to get your payment back. On other hand, you can’t get back your cryptocurrency.
  • Refunds may not be possible in cryptocurrency. If you pay someone in cryptocurrency then you want to refund your money then whether it is in dollars or cryptocurrency because the value of cryptocurrency is kept changing every time.

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