For those who don’t know, a cryptocurrency is a form of digital currency circulating in the world of cryptos.
In other words, crypto does not have any physical bill or coin. It is purely online. Compared to bank transfers, cryptocurrency transactions can be done easily without worrying about the go-betweens. There are two well-known cryptocurrencies in the world as of now. These are Ether and Bitcoin.
People are using any form of cryptocurrencies to save money from transaction fees and make a payment quickly. Some consider cryptos as a form of investment, hoping that its price will increase in the future. You can get crypto by buying it with your real money. Aside from that, you can also get some by joining the pool of bitcoin miners. Storing your crypto is being done on hardware, a computer, or online. Just make sure you have installed a digital wallet in there.
Before you make a purchase of your desired crypto, make sure to understand that it does not offer the same range of protection as the US Dollars have. Not only that, but it is also prone to scammers. Scammers and fraudsters are roaming around the crypto world and asking the miners to pay for a product with bitcoin or other cryptocurrencies, knowing that this type of payment is irreversible.
This post will provide you important things you need to know about cryptocurrencies. Keep reading to know more about it. For more information you can visit here readersdigest.co.uk
The Value of Cryptocurrency is Changing Constantly
The value of any type of cryptocurrency might change in just a blink of an eye. For instance, a single bitcoin token worth 20,000 US Dollars today, but the next day, you will be found out that its value has dropped down to 200 US Dollars. Take note that when a crypto’s value reduces, there’s a low chance that it will increase again.
Cryptocurrencies Are Not Backed by The Government
Compared to US Dollars and other fiat currencies, cryptos are not insured or regulated by the government. This means that each crypto you have in your digital wallet is not protected by the government. In other words, if you will not store it properly, you might end up losing it because of fraudsters.
Suppose you are going to store your cryptocurrencies in your digital wallet managed by a particular company, and that company was hacked or goes out. In that case, the government cannot help you regain your money compared to the amount stored in credit unions or banks.
Cryptocurrencies or Companies that Promote Cryptos are Different
Before you invest your real money in cryptocurrencies, make sure that you know and understand the claims of the company that promotes crypto. Considering that we are very digital and technological, ensure to search the name of the company as well as the crypto name online. Make sure you will add words such as complaint, scam, or review when doing your research.
You Don’t Have the Legal Protections When Paying with Cryptos
If something wrong happens, owners of debit cards and credit cards have nothing to worry about. For instance, if you want to dispute your money from a company, the company managing your credit card has some processes to make that will help you get your money. As mentioned, payments in cryptocurrencies are irreversible. After making a payment with crypto, there is no turning back. That’s why before making a purchase and paying it with crypto, know the reputation of the seller as well as its location. Also, consider contacting someone who has experienced paying the seller with crypto.