Cryptocurrencies in a Nutshell
With our technology today, nothing is ever impossible. Even our money can now be converted into virtual currencies, which are popularly called Cryptocurrencies.
Cryptocurrencies in a Nutshell
Cryptocurrencies are digital currencies that can be used in online transactions such as buying goods and products. It can also be used as payment for services which has been rendered or tasks that have been completed. Most people even use this as part of their investment in order to earn real money. Through this very use of cryptocurrencies, most online transactions today have become fast, smooth, and secured. Thus, its popularity is greatly increasing.
As a matter of fact, according to the market research site called CoinMarketCap, there are more than six thousand seven hundred (6,700) different cryptocurrencies that are publicly traded today. In addition to this, cryptocurrencies have been unsteadily increasingly that as of December 2020, the total value of all the cryptocurrencies was over six hundred forty-five billion dollars ($645 billion). In terms of bitcoins, one of the most popular digital currency created, the total value was over four hundred twenty-one billion ($421 billion).
Because of this fast proliferation of cryptocurrencies, most companies, especially those located in the United States, have acknowledged its use in their online transactions. Some have even made their own currency, which is called tokens, and these can be used to transact business with them. Additionally, most of these companies have accepted bitcoins as their virtual currency in their transaction.
Why is Bitcoins More Popular than Others?
Just by the fact that the total value of bitcoins as of December 2020 is over $421 billion, it has proven itself to be the most popular among the cryptocurrencies created.
Here are the reasons why:
The first is because bitcoins are safe and secure to use. Each of the bitcoins has its own encryption private codes, which give it value in an online transaction. Aside from that, these codes are hard to replicate. Thus, creating a fake bitcoin is almost impossible, or even making a copy of it.
In addition to this, thanks to its well-contained private codes, it is easier to track in the Blockchain system. This system is where every single bit of online transactions related to cryptocurrencies are managed and recorded. Since it is highly maintained, the history of transactions can easily be traced and retrieve from it,
Another reason why bitcoins is the most popular among the cryptocurrencies is because of their anonymity. Transactions using bitcoins need an account number. Unless a user admits that the account number used to release bitcoins is his, no one will know the owner of the account number. Only the transactions made can be traced since it is recorded in the blockchain but not the owner of the account number.
Last but not least, bitcoins are not controlled by the central banks, just like other cryptocurrencies. Thus, even if there are fluctuations in its value, central banks cannot lower their values.
When doing online trade using bitcoins as well as other cryptocurrencies, you need to remember how to be cautious. Be meticulous when examining online trading platforms—research their background. Be patient when reading the reviews regarding the trading platform. Remember that not all trading platforms are legal. Some platforms will only let you store bitcoins remotely and never having to own them. There are many online bitcoin trading tools which can be an example of a legitimate trading platform. These are the online trading tools that you will need in order to increase your bitcoins in your digital wallet.