Digital currencies are a growing trend around the world. What started out as the brainchild of a small network of cryptography enthusiasts has since become an international phenomenon and a trillion dollar industry. And as you read this, some nations are preparing the groundwork for state-sponsored cryptocurrencies.
To say the revolution isn’t going away is an understatement. As time marches forward, cryptocurrencies is expected to become a mainstream payment method. In the meantime, however, crypto remains intimidating for many, a fact not helped by the sheer number of large cryptocurrencies now in existence. However, with some application, anyone can gain access to the cryptocurrency world as technical prowess becomes less of a necessity.
What is Crypto?
Crypto is the abbreviated form for cryptocurrency. Its name hails from the utilization of the science of cryptography for security through encryption and transaction checks. This technology enables cryptocurrencies to be theft-proof and secure.
Know who you are sending crypto to.
One should always know who they are sending crypto to. If you send coins to the wrong wallet address, this money will disappear forever if the transaction is completable. As with any other form of money, you should focus on dealing with legitimate businesses with a solid reputation. Online stores are easy enough to verify, and sites like https://smartbettingguide.com/ethereum-sports-betting-sites/ help with industries like gambling.
When entering the wallet location, it is wise to copy and paste the address rather than attempt to transcribe it manually. This cuts down on errors resulting in coins heading to the wrong destination.
Which should I choose?
With as many options available as there are, it can be rather intimidating to know which currency to choose. Each currency generally has nothing but pros, with cons being market instability that plagues all physical and digital currencies. A few do not enjoy the same scarcity-driven mechanisms that ensure the coin’s value increases. These currencies are typically utilized by payment networks and other systems like Ripple.
It should be noted you do not have to buy a singular coin. Coins are broken up into fractions, just like dollars are broken into change.
Bitcoin is the oldest cryptocurrency and is regarded as digital gold. It is the highest-priced and widest accepted currency available on the market.
Litecoin aimed to mimic Bitcoin, but with a higher total volume of coins that can potentially exist. This allows the currency to be regarded as digital silver. It enjoys a broad acceptance, but not as wide as bitcoin.
Ethereum is built on the same technology as Bitcoin, but adds additional programming options that allow for greater functionality with the currency as a built in feature. At present, Ethereum 2.0 is being developed, which aims to boost security and integrational functionality.
Ethereum has a large but smaller than bitcoin acceptance. It remains a secure and decently accepted currency.
XRP is a cryptocurrency utilized in the Ripple Network. It has no built-in limits to drive scarcity, but there will never be a liquidity or scarcity issue with the currency as an advantage. You’ll utilize this currency if you use the Ripple network. Though it uses a different security mechanism, it is as secure as the aforementioned three.
There are other coins available for purchase. Less there is a direct need for them, it is wise to stick to the four currencies mentioned above.
What Wallet Should I get?
There are three options for wallets, each with its pros and cons.
+ secure from any hack attempts
+ can be transported physically to any location
– if you lose your password, you lose your money
– if the hard drive dies, you lose your money
+ Secure and Easy Access
+ If the password is lost, can retrieve your account
+ offers additional transaction security
– Can be hacked
– Can be stolen by the site (Has not happened yet, only a market which you shouldn’t store your money on has stolen people’s crypto and is defunct)
+ Secure and Easy Access
+ Account security is tight
+ account is retrievable
+ Can convert your crypto back to traditional currencies
+ Can provide you with tax information
– Security can delay conversions
– Security can delay further acquisitions
– Not anonymous as your information is tied to the account
How to stay Anonymous with Ethereum and other currencies
All currencies have built-in anonymity that is only lost when you maintain a brokerage account as a digital wallet. Only privacy lost with brokerage account is profit gains can be disclosed to your governments, but beyond that, they do not track or care what you are doing with your cryptocurrencies.
From a wallet crypto is sent to an account. In the instance of gambling industry, it will be sent to a specialized address and then credited to your account. You need not provide any personal information with crypto and can use your crypto how you please. When you are done you send it back to your personal wallet.
Congrats, you now understand the basics of utilizing cryptocurrencies. Have fun being on the revolution in finance.