Cryptocurrency is becoming an ever more prominent part of our lives. The concept that started small is slowly becoming one of the most significant elements in the world of finances. Sure, it had a rocky road to this status, but the whole trip was surely worth it. We wouldn’t be aware of all the benefits it can provide if this didn’t play out exactly how it did. At first, it was uncertain if it will ever reach the heights it did, mainly because of the skepticism that surrounded it for quite a long time.
With celebrities such as 50 Cent, Gwyneth Paltrow, Ashton Kutcher, Paris Hilton, and many more claiming that they’ve dabbled in bitcoin, the esteem of digital currencies has gone up a lot people’s eyes.
Especially after 2023, when Bitcoin and Ethereum have reached a record value. In April 2023, the price of BTC was $61,000, which was unthinkable before it happened. Since then, the interest in this concept has skyrocketed and it’s not unclear if it will cease to exist in the future.
Some, however, still may not know the basics of what cryptos are, how to use them, and how to avoid falling for some of the most popular frauds and scams. For those just dipping their toes into the world of cryptos, this is a short, helpful, beginner’s guide on what they are, and how to avoid falling for these scams. Here, you will take a look at some of the basics, which will help you understand the concept in the best possible way. Without further ado, let’s take a look at it.
Table of Contents
What Is Cryptocurrency
Cryptocurrency is a digital currency, which means they exist in electronic form. There may be services that allow cashing in them for physical tokens, but generally, they can be found in electronic form. The appeal is that it requires no intermediary, a bank for example and that it isn’t regulated by a central authority, meaning a government. This allows for greater freedom and anonymity when spending your money.
These are decentralized, and there is nothing that can affect its rise and drop. However, the recent fluctuation in its price, caused by the statements of Elon Musk has changed the opinion many people had about this decentralization. But it needs to be said that there is no authority above them. Some of the developers said that the concept will become even more independent in the future, through developing their immune system.
How to Get Cryptocurrency
One method of acquiring cryptocurrency is through a complex process called “mining“. The process involves completing several so-called “blocks” to earn a reward of bitcoin. In 2023, mining is still a rewarding process, however, perhaps a bit daunting for a beginner, just trying to break into the world of bitcoin. However, it needs to be said that it has changed from the initial look. For instance, it has become much easier to mine these if a couple of miners join their forces. Sadly, the rewards are fewer in this case.
The best way to get started with cryptocurrency is to make an account on a trading app or website. Look into the many apps or websites which have been popping up in recent years, and you will find most of them offer a beginner-friendly interface, data safety, and tips for new beginners. Apps like PrimeAdvantage have proven themselves through their military-grade encryption security and their helpful, user-friendly interface. Since there are so many of them, it can be quite hard to find the proper one. That’s why you will need to conduct thorough research.
Do some research online, find the app that best suits you, or your needs, and get involved in the world of cryptocurrency.
Cryptocurrency: What to Consider
Before you start investing in these, you have to be sure to properly understand the differences between regular payments and these payments and the considerations that come with them. As you can presume, they are widely different, and understanding the difference is something that plays a crucial role in trading. Therefore, you will need to invest your best efforts into understanding these. We know it can be quite confusing sometimes, but when you understand it completely, you will face no problems.
Cryptocurrency is stored online, on an electronic device or external hard drive, which means that if your “digital wallet” is in some ways compromised, you will likely have no chance of retrieving your funds. Therefore, you will need to look only at e-wallets that can provide you with the utmost security during these transactions. Be sure to search for them online. One of the ways you can establish quality is to take a look at some online reviews and specialized forums that provide numerous data on this topic.
These payments are not reversible. Usually, once payment has been made, the only way to reverse the payment is to rely on the kindness of the person you made the payment out to. In other words, the only way to get your money back is if the person you gave it to agrees to send it back. Before spending cryptocurrency, make sure you’ve done the proper research on the seller, where they are located and if possible, how to contact them, or someone else, if there is a problem with the payment.
They do not come with legal protections. Cryptocurrency is decentralized and separate from any central authority, which unfortunately means there is no way to legally protect your payments. Whereas typically with a debit or credit card one could dispute purchases, the same can’t be done with cryptocurrency. Once again, we would advise you to be careful when handling these. That’s why you will need to seek some of the most efficient solutions available online.
The Future of Cryptocurrency
In recent years, cryptocurrency has been becoming more popular and accepted, with bitcoin seeing a steady rise in value, and predictions being made that it will spike even higher. This year, El Salvador President Nayib Bukele declared that El Salvador has become the first sovereign nation to adopt Bitcoin as a legal tender, lending more credibility to the phenomenon of cryptocurrency as a whole. Before that, Belarus legalized all the cryptos and made them untaxable until 2023.
Since there are too many factors that require your attention when it comes to cryptocurrencies, we would advise you to start learning before you conduct trading. Here, you can take a look at some of the most significant facts about these and how you should handle them. We are sure you will find them interesting and useful at the same time.