If you've been a minor player monitoring the cryptocurrency market, maybe now is the time to get more serious, as cryptocurrency is maturing quickly. And with COVID-19, stock prices have fallen dramatically, and along with that, cryptocurrency prices have fallen dramatically.
Compared to the existing fiat currency system like the Canadian dollar, cryptocurrency is still in its infancy, but given the pace at which encryption is rapidly gaining more and more users, fiat money suddenly doesn't seem so. far. about the game.
Paper money printed out of thin air and distributed primarily electronically (via wire transfers or credit card payments, for example) tries to stay relevant in the digital world. It's similar to Charlie Chaplain on a big motorcycle with a huge advantage over a modern high-speed Japanese superbike.
Somewhere along the line, the old ways will be left in the dust by the new. The question is not so much "when" or even "why" will this happen, but rather "how". The question is, how do we all cross the sidewalk?
? How are cryptocurrencies different?
In order for beginners to understand cryptocurrencies, they must first understand fiat money. Simply put, fiat money is the paper that people have agreed to represent of a certain value. It has no intrinsic value as it is backed by a public bank (presumably based on some economic factors).
The more closely one studies the complexities of fiat money and its incomplete cousin, fractional reserve banking, the less attractive it looks.
Now fast forward into the new millennium and suddenly cryptocurrency offers more tangible value. Why? Because each type of encryption has a maximum amount that can be created, and it will always be that value.
Unlike fiat money, its value fluctuates constantly (due to exchange rates, supply and demand, political crisis, etc.).
Moreover, the way cryptocurrency is valued is very simple: if a cryptocurrency has a supply with little demand from traders and users, the value of the cryptocurrency will go down.
Alternatively, if the supply of a particular cryptocurrency is limited and demand is high, the value of the currency will increase.
? The most common cryptocurrencies
There are countless cryptocurrencies and more are being created every day. Here are some examples:
Bitcoin - the first cryptocurrency ever created and designed to be a viable alternative to fiat money.
Ripple: Unlike most cryptocurrencies, it does not use blockchain to achieve transaction consensus across the network.
Bitcoin Cash: A form of Bitcoin that allows more transactions to be processed than traditional bitcoin because it has more storage.
Litecoin - is designed to be a faster version of Bitcoin. In technical terms, it's very similar to Bitcoin.
? How to buy cryptocurrencies?
With the growing popularity of cryptocurrencies, it is much easier to buy and invest in them than ever before. There are sites like Netcoins that offer simple, fast, and easy-to-use ways for all of us to enter the cryptocurrency market, regardless of our level of cryptocurrency understanding.
When creating an account, the user can choose which of the most popular and widely publicized cryptocurrencies to enter. From ubiquitous Bitcoin to its most popular rivals - Ethereum, Ripple, Litecoin, and Bitcoin Cash - they're available to trade with just a few clicks.
Netcoins has an easy to use panel where you can easily deposit, withdraw and buy cryptocurrencies. Unlike many exchanges, you can contact them by phone, email, or chat.
What can be done with cryptocurrencies?
There are two options: trade (like bonds or commodities) or use it as a currency for purchases.
As more retailers and online businesses adapt to cryptocurrency trading, fiat currency will become less convenient to use, especially since it will still involve dealing with a bank at one. particular point in the exchange process.
