With the evolution of technology in every aspect of the world, who knew one day the currency would digitalize too?
The hassle of carrying the money in your handbags and pockets, keeping it safe from robbery, various banking scams have made it quite difficult for some people to keep their money and savings protected. Consumers and buyers prefer online payments over physical cash already. Instead of going through all the trouble of going to the store and handing out the cash people like to stay at home or wherever they are and make the payment with the mere click of a few buttons. However, even with a payment method as convenient as this, it is almost inevitable to avoid fraud.
Hence as a solution to every single problem regarding currency and its management that people have been through, the new emerging digitalized currency is the cryptocurrency.
What is Cryptocurrency?
Many of us have heard the term cryptocurrency or got astounded by all the buzz around it but were not able to comprehend what cryptocurrency means? Some of us might have heard about the bitcoin being used as an unseen invisible coin being used as a currency and felt shocked as to how that is even possible?
If these questions still bother you, then look no further, the answers to all of your queries are present right here in this article.
Cryptocurrency is a digitalized currency that has no physical presence and exists as a unit stored inside a database as an entity.
When this money is deposited, spent, or transacted, the record of it is stored inside a digital wallet. Or let’s say that the digital wallet is your bank account that has no physical existence.
How is a cryptocurrency built?
The cryptocurrency was built using blockchain development on the principle of encryption. Hence the cryptocurrency is a comparatively secure and less risky investment.
Types of cryptocurrencies
The first cryptocurrency to emerge in the market was Bitcoin. All of the readers must have heard about it. Bitcoin was launched in 2009.
Right now in 2021, there are several types of bitcoins circulating and being widely used in the crypto world.
Some of them are:
A recently launched cryptocurrency that is immensely popular nowadays is Dogecoin. Especially after receiving the endorsement from the business Tycoon, CEO of Tesla Mr. Elon Musk, the investments in Dogecoin has rapidly increased in a short period. Even various parties and individuals who never showed interest in cryptos before have been seen making investments in the crypto world.
How to acquire it?
Cryptocurrency can be obtained through certain online platforms. There is a very convoluted and intricate process to earn cryptocurrency called mining.
In Pakistan, people are found taking part in crypto purchases and trade through a channel called Binance.
Cryptocurrency for business investments
Since cryptocurrency is a promising investment many people desire to turn this into a major investment used to begin new ventures or good-scale businesses. But there are various scammers in the process as well. Here is how you could avoid it.
Some companies solely work on scamming people into acquiring their investments and paying off their clients. YES! YOU HEARD IT RIGHT! These are small-scale unregistered companies that make massive profits only by hiring a small hierarchy of people to scam people off their money and keeping it to themselves. They usually work by reaching out to people through social media and offering them to recruit into training sessions for cryptocurrency businesses. They then make them buy cryptocurrency making sure they have the access to essential pre-requisites of the buyers, illegally acquiring their money.
Some scammers offer you fake jobs as investors in fake investment companies. Since cryptocurrency solely works on digitalization so one expects a physical building or meeting the hierarchal structure of the company hence easily falling for the trap of getting recruited in an online company.
Some scammers present to you offers like they will double your investment up to 70% more and keep a small amount such as 5 to 10% of it as their payment.
Beware of such scammers who would convince you to make hefty investments and then end up taking all of your money.
Disadvantages and advantages of cryptocurrency
Every process or investment has both advantages and disadvantages. Here is a comprehensive overview of both sides of the coin. literally and figuratively! Just so you have the entire information at hand before making an informed decision.
Unlike regular physical currencies, the transferring of funds is much easier faster, and durable with Cryptocurrencies. The transfer is always direct from the sender party to the buyer party. No third party is involved. such as bank account transfers, debit cards, etc in usual cases.
Since cryptocurrency has been formed using highly complex coding via blockchain, it works on the principle of encryption. Your data and your transactions are confidential.
Blockchain is a very complex form of code and cryptocurrencies exist in digital databases. It is very hard for even a professional hacker to hack your details unless you trust an unknown person with your essential credentials, pre-requisites and end up getting scammed. (as mentioned above).
The transfer fee associated with the funds is super minimal unlike with banks.
Since the cryptocurrencies are almost completely anonymous and super confidential regarding the credentials of the owner they could be used in several illegal activities such as money laundering.
This digital currency is also notorious for being used by criminals on the dark web for getting various illegal activities done.
If you get scammed the loss would be highly unrecoverable.
Digitalization is the face of the future! We can not escape from it neither should we hesitate from adapting ourselves towards it. To thrive in our personal ventures or for any nation to survive in this relentless slog of the rat race, digitalization is the way to go.
Cryptocurrency is just the beginning of a new era. Like every new invention, it involves a lot of risks too but running away from something new just because it’s overwhelming could only slow down our progress. To make the most out of it, it is essential to make the knowledge about the use and benefits of cryptocurrency common to everyone. The government ought to add simple and basic knowledge of Cryptos in the curriculums.
Any time a country transitioned to a fiat currency, it collapsed. That’s just world history; you don’t have to know about cryptocurrency to know that.
– Nipsey Hussle