We often hear about crypto currencies. Although we understand intuitively that it is an encrypted virtual currency or even digital and therefore not physical like our banknotes and coins, it is common to want to deepen the question. The operation remains simple because it involves converting a classic currency such as the Euro into a cryptocurrency.
The principle of cryptocurrency
It’s a virtual currency that acts like the money you have in your bank account because you don’t have all your cash in it. It’s secure: it’s encrypted to prevent forgery. Unlike your regular money, it does not go through banks and this money is stored in digital wallets and is based on computers called blockchains.
In other words, it bypasses the traditional banking system and is not under the control of the government or even a central regulatory authority. The principle is to make transactions directly from one person to another by passing you from a third party that is the bank.
What are platforms for?
The cryptocurrency platform serves above all to simplify your life. They allow you to sell, buy and sell your crypto-assets. This is the most used method of performing operations. These platforms usually charge you a service fee, like a bank, which can be deducted from your buy, sell or trade order. So it is necessary to ask before choosing your exchange platform, especially to know the fees, to know the withdrawal limits and to know its reputation because he has your crypto key. Their use is simple but it constitutes a third, an element to be considered.
How Blockchain Works
Simply put, blockchains are a type of ledger that records all transactions. This is confirmed and confirmed by “minors”. It is stored on computers that operate using this technology. In other words, the database is public and the books can be accessed by anyone. To make a transfer, you must prove that you are the owner.
What can it do?
Like regular money, it is possible to use your crypto currencies to buy in stores although they are mainly used to buy NFTs or even create them, make donations or even pay your bills. Although this is not its main use, it must be admitted that it is for speculation that crypto-currencies are truly successful. These currencies are very volatile in nature, be aware that you will gain money easily but also lose some. Not all crypto-currencies have the same uses and therefore it is necessary to know about the specific use of each one even if some are universally accepted.