What is Cryptocurrency and How Can You Use It?
Money plays a big part in our lives. If you don’t have it, it can be hard to make a living, as well as paying for all the essential things you need to survive, such as groceries and healthcare costs. And whilst you may have thought that they can only be paid for by cash, or bank notes, you’ll be surprised to learn that new currency is starting to make a breakthrough around the world.
Over the years, cryptocurrency has soared in popularity, with new digital currencies like Qoin also becoming more widely known. As this overview of Qoin on LinkedIn explains, they are now offering merchants the opportunity to accept this type of currency as a payment so they can accommodate the needs of a wider group of people.
So just what is cryptocurrency, and how can you use it? Luckily, this article explains everything you need to know about this form of currency. Let’s learn more.
What is Cryptocurrency?
Cryptocurrency is a form of payment that can be exchanged online for goods and services. It is a medium of exchange that only exists in the digital world and commonly uses encryption that ensures the security of these types of transactions. Put simply, it is an alternative form of payment to cash and credit cards and is often referred to as digital or virtual money. Just like you have your dollar and pound, cryptocurrency can serve as ordinary money but doesn’t have a physical nature. This is because it only exists in electronic form.
Though new cryptocurrencies are being discovered daily, the most popular form of cryptocurrency is Bitcoin. This type of digital currency can be traded over a computer network that isn’t controlled by banks, nor does it have any central points of transaction storage, (a database that holds a record of all transactions made). Bitcoin has been around since 2008 when it was first published as an idea on an electronic mailing list for computer scientists who study secure communications. Having the pseudonym Satoshi Nakamoto, no one yet knows who this individual is.
How Can You Use It?
If you are still relatively new to the world of cryptocurrency and Bitcoin, you may be surprised to hear that it can be used in many different circumstances, as well as being actively traded on exchanges that allow people to swap physical money for Bitcoin. Of course, you need to make sure that you have a cryptocurrency wallet before thinking about using this digital currency for a specific reason.
Before deciding to go on a spending spree, a great way to spend any cryptocurrency that you have could be to connect it to a debit card. If you have one, you will come to realise that this will allow you to spend this currency as you would if you had physical cash. You can find some of these cards with companies like Visa and MasterCard. So, if a retailer accepts Visa, you will be able to spend your cryptocurrency.
As well as this, many small businesses, like coffee shops, are now beginning to warm to the idea of accepting cryptocurrency payments. Other online platforms like Shopify, WordPress, and Etsy are all involved in the cryptocurrency world too, making it easier for customers to buy any products or services that take their fancy. It could also be important to note that gambling sites welcome Bitcoin, and you can even use it as a payment for buying real estate and cars. Who knows, in a couple of years, even more places may accept cryptocurrency or Bitcoin as a payment.
If you wanted to be sensible with your digital currency though, you could also use it to diversify your investment portfolio. This could be a great way to dip your toes into different investments, but it is important to also be aware that cryptocurrency should only occupy a small section of your portfolio. It also doesn’t work in the same way as what investing in a stock can provide as it doesn’t pay interest or dividends. So, cryptocurrency will only be a good investment if its prices increase significantly. If they don’t, you run the risk of losing a lot of money.
As you have already established, cryptocurrency can be a great thing to look into, provided that you have all the information you need. Many people have been drawn to the idea of cryptocurrency since activities can be done anonymously and it can really expand in price, allowing you to receive a good return on investment. Instead of relying on bank notes or debit cards, digital currency allows you to open a new form of payment options, meaning that if you wanted to buy that beautiful dress in the window, you can do so with this form of currency. It really can open a lot of avenues for many people.
Do you have cryptocurrency? If you do, we would love to hear more about your experiences, so get in touch!