Cryptocurrency: What Is It? Answers to Your Top 5 Crypto Questions!

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#1 - IS CRYPTOCURRENCY REAL MONEY ?

It is, indeed!

Consider the following scenario:

Paychecks are typically received via direct deposit. As a result, since your bank account received the money electronically, you could have hundreds or thousands of dollars without ever touching them. It doesn't render the money fictitious or unreal, does it? Consider cryptocurrencies in a similar manner.

In the real world, your fiat currency (regular money) is kept in a digital bank account entry that serves as ownership proof. The bank that manages the bank account is in charge of fiat money. This means that even though the money in that bank account belongs to you, you must still follow the bank's policies. As a result, you might have to pay a variety of access fees, be fined for not having enough money, and have your account frozen or compromised against your will.

Cryptocurrency is similar to fiat money but it’s 100% digital and you will never be able to physically touch it. Instead of it being held at a bank, it’s stored on the blockchain. So this means that instead of it being controlled by a bank, you are in 100% control of your money and you don’t have to worry about following someone else’s rules.

#2 -WHAT IS CRYPTOCURRENCY?

Digital currency, or cryptocurrency, is money that can be used online and is represented by tokens. Based on the current market value, your token represents a specific quantity of cryptocurrency that you own. You can sell, trade, or withdraw cryptocurrency just like you can with fiat money.

Today, 92% of the fiat money in use is digital, which means that it is not physically held by a bank. In light of this, it shouldn't be too difficult to understand that crypto is entirely digital.

#3 - WHAT MAKES CRYPTOCURRENCY VALUABLE ?

Governments and central banks both control fiat currency. Because it is used by the largest economy in the world and controls the flow of payments in international trade, the U.S. dollar is regarded as valuable.

Cryptocurrencies are a type of digital money that is used all over the world. Since they are decentralised, supply and demand directly affect their value. Similar to stocks, a coin's supply is constrained, and as demand grows, its price rises. In contrast to stocks, there are no dividends and you only own a digital coin with a market value equal to its current value.

#4 - IS IT SAFE TO USE CRYPTOCURRENCIES ?

Yes! Cryptocurrency is stored on the blockchain and accessed through a digital wallet when you own it. Because the blockchain is a decentralised network, neither a bank nor a government can control it. The blockchain prevents forgery, counterfeiting, and reversal of transactions. because transactions are recorded openly on blockchains, which are decentralised, tamper-proof ledgers. This open-source system prevents coin duplication and does away with the need for a centralised organisation, like a bank, to verify transactions. (They removed the banks from the procedure).

#5 - WHAT OTHER BENEFITS DO CRYPTOCURRENCY USERS ENJOY ?

Cryptocurrency transactions are almost instantaneous, in contrast to fiat transactions. When you deposit money into a bank account, for instance, you might need to wait a few days before you can access the funds. Similarly, when you return an item to a store, you might need to wait a few days before the funds are deposited into your account. Additionally, banks have cut-off times, and external transactions may experience longer delays than internal transactions.

Because there are no banks involved and the blockchain instantly confirms your transactions, cryptocurrency transactions happen instantly.

Anyone with internet access can use cryptocurrency! For a variety of reasons, more than 2 billion people do not have bank accounts. A could have rejected them.

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