The term cryptocurrency refers to all digital currencies such as Bitcoin, Ethereum or Litecoin. A digital currency, unlike the euro, the dollar or the book, does not physically exist. There is no Bitcoin note for example or coin. A cryptocurrency exists only through the internet and this is where it is bought, exchanged and resold. It can also be kept while waiting for its price to rise, this is called the holding company. The cryptocurrency market is worth several billion euros and there are more than 15,600 different cryptocurrencies.
We talk about cryptocurrency, but depending on the person, they are also called crypto assets, crypto currencies, digital currencies, digital assets or virtual currencies. What is cryptocurrency used for?source: Binance.com
Why use cryptocurrency? At one time, cryptocurrency was mainly used to make money. We bought when the price was low, then when it went up, we resold by taking profits in the process. This is still the case today for many investors, but since then, cryptocurrencies have evolved to do even more. You can now pay in all stores accepting a Visa credit card with your cryptos by having a card issued by Binance, CoinBase or eToro. When making a payment in cryptocurrency, the seller does not see that he is paid in crypto because during the payment, the crypto currencies are automatically converted into local currency, and this in a transparent way.
Owning cryptocurrencies can be a good investment in the future. In the example of Bitcoin, those who were the first to buy it became very rich if they did not make the mistake of reselling too soon. In these early days, a Bitcoin sold at the price of a few hundred euros. At its peak, it was worth more than 60,000 euros. Even today, despite a fall of more than 50% which for many was predictable, its value is around 32,000 euros. Buy cryptocurrency.
How to buy cryptocurrencies? To make a purchase of cryptocurrency, nothing could be simpler. All you have to do is create an account on a payment platform such as Binance, eToro or Coinbase and use either bank transfer or a credit card. In a few clicks you can buy Bitcoin, Ethereum and other cryptocurrencies.
Contrary to what many still think, it is not mandatory to make a purchase of a unit of the crypto in question. Few people can afford even if the price of Bitcoin is quite low today, to invest more than 30,000 euros to get a Bitcoin. It is quite possible to buy for 10, 50, 100 or 1,000 euros of bitcoin (or other cryptos). The latter has 8 decimal places so you can buy if you wish, for example, 0.001 bitcoin for 32.40 euros (at the current price). Sell or trade cryptocurrency
To sell cryptocurrency, it happens in the same place where you bought it. All you have to do is indicate the quantity you want to sell, at what price you want to sell it or for which other crypto you want to exchange it and validate an order (an order is a transaction request). When the asking price has been reached, the order will be made automatically and your account will be credited in the currency or crypto you have chosen.
This is called trading. Trading consists of selling or exchanging cryptocurrencies. Trading can result in trading. To read on this topic: What is the best trading platform? Security of cryptocurrencies.blockchain
Whenever a cryptocurrency transaction is made, it is added to a ledger, called the blockchain. The blockchain is a database that gathers all transactions made in cryptocurrencies. Transactions are the purchase, sale, creation or exchange of crypto. The blockchain is accessible to anyone who wishes it publicly, but no private information is revealed. Mining
We speak of mining when users make available their computer, or dedicated machines to verify each of the transactions and register them in a block that is added to the blockchain. The Blockchain is only a series of blocks containing encrypted information on all transactions carried out on the network. (For more information: Cryptocurrency mining) Wallet
Your money, in the form of cryptocurrencies, is kept on a wallet, also called wallet. Secured by an access code, and a recovery phrase, it is almost inviolable, provided that you never give your password or recovery phrase to anyone. The Binance platform offers to keep your funds which avoids taking the risk of misplacing them if you lose your access codes to your wallet. Difference between token and cryptocurrency.
Before being a cryptocurrency, each currency is first a Token,” it is also called a coin. As long as this token (coin) is not available on an exchange platform, it does not pass to the stage of being a cryptocurrency. For this to happen, a token (coin) must be available for purchase and sale on a platform of your choice such as Binance, Coinbase and any other recognized platform.
There are several million tokens, but few evolve into cryptocurrency. A user even without knowledge can create his own Token. If he manages to place it on a platform, usually paying and proving a certain volume of exchange, then he switches to the rank of cryptocurrency. Cryptocurrencies and banking
In France, as in many countries of the world, it is possible via his bank to make a purchase directly from his bank account, be by card, be by transfer. There is little chance that your bank will refuse a transfer. However, banks are not the most favorable to the use of cryptocurrencies, because the latter to help to no longer need a bank account.
Knowing that it is possible to receive your salary (We talked about it in this article: Bitcoin news of January 24, 2022, nothing goes anymore.) in Bitcoin and pay by credit card for your purchases, the use of a bank account becomes almost obsolete. Some countries around the world, such as El Salvador, have adopted cryptocurrencies as common currencies and other countries around the world should follow this path. In France, we still have a long way to go. Cryptocurrency: Conclusion
As you may have read, buying Bitcoins is very simple and the whole world has turned to this new technology. Despite the risk that this may entail, because there is always a risk when investing money, cryptocurrencies have taken their place in the global economy and few people today have not heard of them. Our guide offers you new articles on this topic every day to help you understand everything better.