Ok, so you've probably heard or know that it is possible to acquire and own money in form of digital assets that can be used to perform really secure transactions. Yeah, and since the onset of Bitcoin, the cryptocurrency space has far grown wide with newer forms of cryptocurrencies surfacing; each with its own proposition to solve a particular problem.
While it's quite fun to know all these, it's also relevant to note a few important things before delving into the cryptocurrency world generally.
CRYPTOCURRENCIES ARE INDEPENDENT
While physical cash in your wallet or bank account is issued and regulated by the Central Bank of your country back by the Government, digital currencies/ cryptocurrencies are totally independent of a central body and if you own them, you basically have total control over how you use them. And as it seems, the tangible value cannot really be accorded.
CRYPTOCURRENCIES ARE HIGHLY VOLATILE
If you follow the trends of certain digital currencies, you'll probably notice the drastic rise and fall in price value as time progresses. This is usually due to the fact that these currencies are digitally backed and thus can be traded on centralized exchanges in real-time. And for every buy, the price rises by a certain percent, while for every sell, the price drops by a particular percent as well.
Yeah, do not be surprised if $1 suddenly becomes $10 within few minutes and later drops to probably $5 the next minute. It's just how it is in the crypto space!
BITCOIN IS THE BOSS!
As we have it, the fact that Bitcoin came first forming the major pioneer in the crypto space, cannot be rubbed off. And while as of recent, over 1400 other cryptocurrencies exist in the world, Bitcoin still remains as KING OF ALL still leading as far as adoption is concerned.
Bitcoin still makes up over 50% of the aggregate $589 billion market cap of all cryptocurrencies.
BLOCKCHAIN IS THE BUILDING BLOCK
While these cryptocurrencies are termed as independent, it is still necessary to know that all cryptocurrencies are built on a Blockchain. Blockchain is basically a digital and decentralized ledger that records payment and transfer transactions in a safe and efficient manner. This is what facilitates the transactions performed.
Certain 'guys' called miners help ensure that every transaction over the blockchain network gets verified before it can be termed successful. In crypto terms, A miner is a node in the network that collects transactions and organizes them into blocks.
TRANSACTIONS ARE SECURE
Transactions made with cryptocurrencies are done over a secure network. This thus makes it really hard to accurately track. This has always been the idea all along. I mean 'crypto' is meant to mean 'hidden' right?
It is therefore highly recommended to be sure of who you are sending whichever coins of yours to. As if it's a wrong person or a scammer, most likely no one can help you recover them!
CRYPTOCURRENCIES ARE BANNED IN SOME COUNTRIES
Over time, while cryptocurrencies are being adopted across the world as a secure way to perform transactions. It is, however, important to know that some countries due to particular reasons have placed a ban on the use of cryptocurrencies. Probably because they do not see any good reason to support such currencies that are not backed by a central official body, or just any other reason personally known to them.
A list of these countries include;
Algeria.
Bolivia.
Ecuador.
Bangladesh.
Nepal.
Macedonia.
If you live in any of these countries, you might wanna take your face off anything pertaining to cryptocurrency transactions. Just so you do not get into serious trouble.
Do you think there are other important things to note before venturing into cryptocurrency? Let me know in the comments. Thank you for taking your time to read! :)
Here at read.cash there are many Bangladeshis who use Bitcoin Cash.