Nowadays, almost everyone has heard about what cryptocurrency is. Despite the prevalence of this term on the Internet and the media, not everyone understands the essence of the phenomenon.
Many sites on the Internet can tell us about what cryptocurrency is. So, on Wikipedia there is a definition of cryptocurrency. It is "an electronic exchange mechanism, a digital asset, the issuance and accounting of which is often decentralized."
That is, it is a type of electronic currency, digital coins based on open computer code.
Cryptocurrencies differ significantly from the usual money for our understanding, for example, rubles. For rubles to become electronic, to get into the network, it is necessary to move them there in one of the ways. For example, put on a card account.
And in order to put them there, it is necessary to have (and, accordingly, give to the bank) a material analogue - banknotes printed by the central bank.
In the case of cryptocurrency, there are no paper counterparts, as well as an emission center. A certain amount of currency in circulation is programmatically set, above which it simply cannot get into the network. Due to this, Bitcoin, like other popular virtual money, has shown significant growth over a long period of time. This is due to the fact that it is becoming more and more difficult to mine cryptocurrency, because the central bank can issue new banknotes and dump them on the market, but the program cannot.
There are no intermediaries such as banks in the use of cryptocurrencies. After all, from the central bank new banknotes get there. At the same time, the bank takes a commission for transfers, issuing loans and other operations. When transferring cryptocurrencies, there are usually no commissions.
Having considered the question of what a cryptocurrency is, you can list the main types of virtual money.
Perhaps the most popular at the moment is Bitcoin. It appeared first in 2009, and gained unprecedented popularity, increasing its value from a dollar per coin to 10 thousand green.
The leaders in popularity can also be called Litecoin, Pircoin, Namecoin, Ethereum and others.
The advantages of all cryptocurrencies are:
- the availability of funds at any time and in any place, the impossibility of closing an account and withdrawing cryptocurrency;
- no commissions for transfers, even between users from different countries;
- the ability to check the validity of all transactions;
- limited release, affecting the constant growth of the value of the cryptocurrency, guaranteeing profit from long-term investments;
- no inflation.
There are also significant disadvantages that cryptocurrencies carry:
- there is no possibility to cancel the payment in case of an error;
- cryptocurrencies are not backed by anything;
- volatility (exposure to sharp fluctuations in the exchange rate).
Knowing what a cryptocurrency is, what types of cryptocurrencies exist at the present time, you can make good money even without leaving your home. An in-depth study of this issue will allow you to provide a decent level of income with minimal costs.
