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What Is Cryptocurrency?

Here’s What You Should Know:

Cryptocurrencies let you buy goods and services, or trade them for profit. Here's more about what cryptocurrency is, how to buy it and how to protect yourself.

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.

Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.

Download our free PDF with more information on what cryptocurrency is, its advantages and how you can use it.

Learning Bitcoin and cryptocurrency.pdf

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Why are cryptocurrencies so popular?

Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:

Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable

Some supporters like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation

Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems

Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.

· Reply · 1622763550

How do I protect myself?

If you’re looking to buy a cryptocurrency in an ICO, read the fine print in the company’s prospectus for this information:

Who owns the company? An identifiable and well-known owner is a positive sign.

Are there other major investors who are investing in it? It’s a good sign if other well-known investors want a piece of the currency.

Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings (you’re an owner), while buying tokens simply means you're entitled to use them, like chips in a casino.

Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.

It can take a lot of work to comb through a prospectus; the more detail it has, the better your chances it’s legitimate. But even legitimacy doesn’t mean the currency will succeed. That’s an entirely separate question, and that requires a lot of market savvy

· Reply · 1622763654

How do I protect myself? 
 
If you’re looking to buy a cryptocurrency in an ICO, read the fine print in the company’s prospectus for this information: 
 
Who owns the company? An identifiable and well-known owner is a positive sign. 
 
Are there other major investors who are investing in it? It’s a good sign if other well-known investors want a piece of the currency. 
 
Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings (you’re an owner), while buying tokens simply means you're entitled to use them, like chips in a casino. 
 
Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is. 
 
It can take a lot of work to comb through a prospectus; the more detail it has, the better your chances it’s legitimate. But even legitimacy doesn’t mean the currency will succeed. That’s an entirely separate question, and that requires a lot of market savvy

Advantages of using Bitcoin and other cryptocurrency

People living in Zimbabwe and those in countries with similar issues are living under a very unstable and predatory government. They suffer from extreme inflation and general economic instability. In cryptocurrency there is a censorship-resistant, inflation-proof asset, so it’s very attractive to people who are looking for a way to maintain value.

However, it is important that one fully grasps how it works to avoid falling for scams.

· Reply · 1622763676

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