What is Crypto Currency and What are the Advantages and Disadvantages of it
What is Cryptocurrency?
Crypto Currency is like our local currencies but not authorized by the government, and it’s not stable yet but still, millions of people use it for online shopping and sending/receiving money to others even one of popular Crypto Currency (Bitcoin) launches his ATM in the USA.
In another word, Cryptocurrencies are the digital currencies that are encrypted by Cryptography. It doesn’t have a physical form and used for online transactions. However, there are many websites where you can convert your Cryptocurrencies in real money and transfer to your bank account.
What cryptocurrency is for?
We can use Crypto Currency as the real currency and it’s another medium of exchanging things, but the real money is printed on paper and we can keep them in our pocket physically. Crypto Currency is created and stored electronically which we can save only on our computers or websites. With Crypto Currencies, we can not just shop online and purchase virtual things like domain, hosting, or some internet service, but we can use to buy physical goods and services too.
List of some cryptocurrencies and when they started:
- Bitcoin (2009)
- Ripple (2013)
- Litecoin (2011)
- Auroracoin (2014)
- Peercoin (2012)
- Dogecoin (2013)
- Namecoin (2011)
- Mastercoin (2013)
- Primecoin (2013)
5 Reasons to use Cryptocurrencies?
- It’s fast and cheap. The transactions happen quickly and receivers receive it in a couple of minutes. The transaction fee is very low compared to other monetary transaction done online, like transactions made by PayPal and Pioneer.
- There are no chargebacks. Once payment is sent, you cannot chargeback. So the chance of fraud is very less.
- People can’t steal your information from merchants. Your details are not sent to the merchant. You can even create a Cryptocurrency waller with fake detail and use forever without disclosing your real identity.
- It’s as private as you want it to be. As we said that you can use without mentioning who you are and where you stay. So your identity is always secure and transactions made by you is only between you and the receiver. No information is sent to the bank or Government.
- You don’t need to trust anyone else. You are the owner of your money. Keep it in your wallet and use whenever you want. You don’t need to trust a bank or any third party service providers.
Advantages of cryptocurrencies:
The 5 reasons to use Cryptocurrency what we mentioned above can also be considered advantages.
Easy and Fast Payment: Make payment without using your credit card or sign any document. You just need to know the wallet address of person or organization to whom you want to transfer money, payment transfer processing is very fast and can affect in a matter of seconds.
Secure: The use of military grade cryptography ensures that transactions remain secure. No person except the owner of a wallet can make transfers or payments from a wallet.
Low or No Fees: Banks and Payment Processing companies charge fees to conduct payment and fund transfer but with crypto currencies, these fees can be eliminated and are very low.
No Fraud: There is no way someone can charge back like they do if payment is made with a Credit card. Once payment is sent, it can never be reversed.
Disadvantages of cryptocurrencies:
Irreversible Payment: There’s no center point in payment processing so if you transfer someone by mistake and want to get a refund for services there’s no option to dispute that person only way to get your money back is to ask the person to refund payment and if he refused then forget about it.
Not Widely Accepted : There are not many companies or websites who accept it, if you have cryptocurrencies and wanted to purchase something then you have to search first that which service provider accept it even if you don’t like their services and have only cryptocurrencies then you have to use it even if you don’t like that provider also in physical stores you have to use real money instead of digital money.
Losing Your Wallet: If you stored your digital currencies in your system or mobile and if you lose it then there’s no way to get your money back you can’t complain to police or even some other person can’t get it, it’s like burning your money. However, there are still ways to keep safe, like keeping it offline.
There is a lot to tell about digital currency, so if you want to get detailed information, you can learn more about Cryptocurrency.