Cryptocurrency has been a hot topic of discussion for many years now. Cryptocurrency has been having a bit of a moment and by the looks of it, it seems like it’s not going anywhere anytime soon. With that said, it’s better to stay informed and educate yourself on ways to use cryptocurrency in 2021.
The birth of the internet, as well as computers, has brought in many innovative payment systems such as credit cards, debit cards, mobile wallets, UPI, and more. The crypto revolution started with Bitcoin back in October of 2008. Fast forward to 2021, where there are almost 6000 actively traded cryptocurrencies.
With so many options available, it can be very tricky to find the one right for your wants and needs. Out of 6000 actively traded cryptocurrencies, the top three cryptocurrencies are:
- Bitcoin
- Etherium
- Ripple
Keep in mind that a cryptocurrency is a form of currency that has been around only 10 years, which means that this is a brand new technology that has already shown its ability to fundamentally disrupt the global financial system.
However, in no way shape or form is crypto perfect. One thing that is certain, crypto has created a paradigm shift in the way we look at money, how we buy it and how we potentially spend it.
Finally, another area in which crypto seems to get a lot of attention is the online gambling industry. While the price of Bitcoin and other altcoins shifts, for the present times, it seems like cryptocurrency is set to become a common part of online gambling platforms.
Most Commonly Asked Questions about Cryptocurrency
Although cryptocurrencies are not yet mainstream, a growing number of companies and financial institutions are buying into them. In general, crypto is being labeled as the future of money. While some people see cryptocurrencies as a great potential, others think that this trend will die soon.
Regardless, many people are interested in exploring this relatively new topic. One of the most commonly asked questions about cryptos is how they actually work. Although not all cryptos operate in the same way, most of them use blockchain technology to make secure transactions.
How Does it Work?
Generally, cryptos work similarly to a credit card, the main difference is that you exchange digital assets for goods and services instead of US dollars. If you want to make a transaction you must exchange currency with a peer using a cryptocurrency wallet. And in order to complete a transaction, you need access to a private key.
The best comparison to a private key is a bank account. An individual can own multiple keys and own all the funds sent to those keys. At last, transactions you make are recorded on a public ledger, which shows the transaction totals but doesn’t show the identities of the parties involved in a transaction.
Is It Safe?
Generally, crypto transactions are inherently more secure than other types of digital transactions, like online banking or peer-to-peer payment services. The more publicly recorded transactions that are added to the blockchain, the more secure the system is.
However, in no way shape or form does that mean that cryptos are not vulnerable to exit scams, thefts, cyberattacks, or money laundering. For instance, there have been noted fake coin launches.
Most Popular Ways to Use Bitcoin
As you may already know, Bitcoin is the most popular cryptocurrency in the world. In general, you can use bitcoin to do just about anything you can possibly imagine. Even though most people use it in these three following ways, you should know that there are many, many more options at your disposal.
By far, the most popular way to use Bitcoin is to use it as an investment for the future. You can either use bitcoin to make a quick profit from investing in it or you can invest in bitcoin as a part of a long-term plan, rather than quick profits and losses.
Another popular way to use bitcoin is to spend it for everyday needs. Over the last couple of years, more and more places have started accepting bitcoin payments as an alternative form of payment.
Finally, you can use bitcoin for luxury expenses. You can use bitcoin to book flights and pay for hotel rooms. It can be noted that bitcoin users are more comfortable spending larger amounts on travel, which goes to show that bitcoin acceptance is beneficial for both consumers and merchants, no matter what product or service they offer.
