Since its launch in 2013, cryptocurrency has begun to rise and received attention from the online world community. People are switching to buying products via the internet, without having to use tangible currency. Cryptocurrency is currently one of the smartest digital currency technologies in the form of assets as a solution to the needs of people’s online financial transactions. Then, why is cryptocurrency so popular? How does it work, or how to use cryptocurrency in real life?
As a decentralized digital currency, cryptocurrency means that not a single person or company is an intermediary for any transaction. As a result, payments are made on a peer-to-peer basis, which means transactions are made between the sender and receiver directly and are recorded through a blockchain system with optimal security. Therefore, crypto requires complex computer specifications with a blockchain platform to make transactions easier.
So, to understand why the cryptocurrency is so hits right now, consider the several ways in terms of how to use cryptocurrency in real life by doing online payment tools:
With crypto, you can use this virtual currency for several types of transactions, including:
- Buying and selling activities on the Bitcoin exchange rate Market.
- Doing personal expenses with company records where you are transacting.
- Providing digital currency payment facilities.
Mass fundraising to minimize transaction costs if the project funded is unsuccessful.
Determine Currency Values
Cryptocurrency is created from cryptography that is well encrypted and very unique. For this reason, you need to know the value of each type of cryptocurrency. This is the same as a financial product, where the demand is high in order for the crypto value to increase. Which means, the currency value of crypto is changing rapidly and can experience an increase or decrease based on the availability or the trust of the users.
Store Your Cryptocurrencies like Bitcoin and Ether
If you choose to manage and keep your crypto on your own, then you will keep the private key to access your cryptocurrency. Otherwise, you may choose entrusting your cryptocurrency to other parties such as:
- An exchange company— You trust an exchange company to store your cryptocurrency. The company will tell you how much Bitcoin or Ether you have there.
- A cryptocurrency wallet software (ie. your computer)— You can download cryptocurrency wallet software on your computer, such as Armory or Ethereum, to store your own private key, so that you have full control over.
- A hardware wallet (ie. Ledger and Trezor)— The hardware wallet can increase security, because if someone hacks your computer, the hacker will not be able to grant a transaction approval.
- Print it on paper— You can also choose to print your wallet (your cryptocurrency address and private key), then secure this paper in a safety deposit box.
So, in short, from all the information in terms of doing payment tools above, it can be concluded that how to use crypto in real life, includes:
- Low-cost cross-border transfers
- Doing peer-to-peer payments
- Safeguarding your personal wealth
As a result, to ensure the protection of your privacy, crypto provides a much safer method for data transmission, especially when it comes to financial information.