Tuesday, August 3

Everything you need to know about cryptocurrencies

Cryptocurrency is a virtual (digital) currency, the unit of which is a coin. Such a coin is encrypted information that cannot be copied, so cryptocurrency has a high degree of protection against counterfeiting. But how does a virtual currency differ from an ordinary currency presented electronically? It’s quite simple.

For regular money to appear in an electronic account, it has to be deposited into an account in physical form (through a bank or payment terminal). Cryptocurrency, on the other hand, is issued on the internet and has no connection to conventional currency in physical form.

How do I work with cryptocurrency?

Cryptocurrency is a lucrative investment tool. When starting to work with virtual currency, you should weigh up the pros and cons:

  • Cryptocurrency is not tied to banks and is not controlled by any organization, so there is no official transaction fee. However, wallets and exchangers do charge a small fee for e-money transactions;
  • The limited nature of cryptocurrency. The rate at which virtual coins are mined is dropping, which means that when, for example, all the bitcoins are mined, the rate of that currency will skyrocket dramatically.
  • The pseudo-anonymity of all transactions. All that can be known about the cryptocurrency transactions is a wallet number, which does not contain any personal information, but despite this fact, transactions can still be tracked, which is very helpful for online fraudsters.

How do you protect your cryptocurrency?

As mentioned above, the anonymity of your payments is not guaranteed at all and this can be a threat to your income. To ensure complete anonymity, experienced cryptocurrency holders use bitcoin mixers such as BitMix https://bitmix.biz/en.

A mixer is an application or website that takes a user’s coins and mixes them with someone else’s. The process happens according to a preset algorithm. As a result, exactly as much money as needed arrives at the addressee, but this amount will consist of many pieces that previously belonged to unknown participants.

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