What are Cryptocurrencies?
Cryptocurrencies are distributed digital currencies – you can even call them digital cash. They allow for direct, seamless and extremely fast transactions between parties. You have full control over your payments and balance, and can spend and earn with ease and transparency.
Since you have full control over your cryptocurrency, you don’t need to rely on a central authority to validate your transactions, all validation is done by the cryptocurrency network. In modern times, credit card companies, banks, and others act as the ‘gatekeepers’ to your money. You trust them to protect your personal information and your money, and in exchange, they manage transactions to ensure that everything is in order.
Cryptocurrencies, however do not require a central authority and manage transactions in a distributed fashion. As such, while a bank might have a database that’s an obvious target for hacking for someone to steal your money, cryptocurrencies aren’t susceptible to these attacks. To top it off, cryptocurrencies can process transactions in a matter of seconds or minutes, and not hours or days as it may take to send money through conventional means.
Cryptocurrencies, often referred to as coins, are stored in digital ‘wallets’ that you use to manage your payments. Your wallet is protected by a private key – think of it as an extremely complex password – that only you know about. You can spend or send money by submitting a transaction from your wallet to someone else’s.
Like cash, you can spend the money however you want – whether lending to a friend, paying for lunch, or even paying an employee or a service. Unlike cash though, as cryptocurrencies are digital you can pay with a wallet app on your phone, with a special keychain, and in other ways that make cryptocurrency easier to use.
To understand more about what cryptocurrencies are you can book a personal consultation with one of our representatives and we will guide you through all the needed information step by step. CryptoTT is always here to help you.