Over the past few years, cryptocurrencies have increasingly occupied the front pages of news portals. An ordinary person, first of all, is interested in how he can use something new and incomprehensible for his own benefit. Can he play real money online casino games on PlayAmo using cryptocurrency? It is desirable that at the same time you have to spend a minimum of effort with maximum effect. So how can a simple person who does not have deep knowledge in cryptography, programming, or blockchain technology use cryptocurrency?
What Is Cryptocurrency?
In order to understand how to use cryptocurrency, you need to understand at least in general terms what it is. So, cryptocurrency is a special type of electronic money, the creation, accounting, and circulation of which takes place within a special database – the blockchain. The main thing is that thanks to him, cryptocurrencies have such properties as:
- Anonymity. All owners of the cryptocurrency keep it in special wallets, through which the owner cannot be identified in any way;
- Availability. To work with cryptocurrency, it is enough to have access to the Internet;
- Security. Hacking a wallet without the help of the owner (conscious or not) is impossible;
- High speed of transfers. Cryptocurrencies are the fastest way to transfer any amount of money anywhere in the world. Transfer between wallets takes a few minutes, while traditional money transfers can take several days;
- Irreversibility of transactions. In principle, it is impossible to cancel a confirmed transaction;
- Decentralization. There is no owner or emission center that can influence the quantity, value, or financial policy of a cryptocurrency.
Based on these properties, it would be logical to use cryptocurrency as a means for payments or money transfers. Indeed, some of the users use it for this purpose. But the overwhelming majority of cryptocurrency holders invest in it in order to earn money. After all, once every few years, the cost of individual crypto coins increases hundreds and thousands of times, bringing colossal profits to their owners.
How to Invest in Crypto?
Do you want to improve your financial situation with the help of crypto coins? It remains to figure out how this can be done. Basically, cryptocurrency can be obtained in two ways: mined and bought.
Mining is getting new crypto coins on special equipment. In short, it can be represented as follows:
- As a rule, the number of coins within the network is strictly limited. For example, for Bitcoin, it is 21 million coins, for Litecoin – 84 million, etc.
- New coins are issued gradually at a predetermined rate. They act as a reward for those users who participate in keeping the network up and running;
- The role of such users is that they keep a record of all old transactions since the start of the network and confirm new ones;
- This kind of work requires a lot of computing power at the moment. It can be provided by expensive specialized equipment worth several thousand dollars.
Thus, in order to get crypto coins through mining, you need to buy, connect and set up equipment for tens of thousands of dollars to work, which is not affordable for everyone.
The second way is to buy cryptocurrency. Here you can use any amount based on your financial condition. You can buy coins on cryptocurrency exchanges, cryptocurrency exchanges, or simply directly from another person.
The safest and most profitable option is buying on a cryptocurrency exchange. However, it requires registering an account, performing trading operations, depositing and withdrawing funds. Buying through an exchanger is much faster and easier, but less reliable. And the limits of such a purchase in the case of an exchanger are limited. Buying from hands is the riskiest option, but it is applicable in some circumstances.
Usually, the purchase method is determined by the following:
- you urgently need to buy cryptocurrencies for a small amount and while the price is low choose the exchanger;
- you need a lot of crypto coins for a substantial amount – then to the exchange.
The exchange is also suitable for those who decide to make money on cryptocurrency speculation. After all, high volatility, i.e. fluctuations in the exchange rate is one of the special crypto coins. During the day, the price often changes by 5-10%, and within a month the gap can reach 100%. But this option for making money is very nervous and not suitable for everyone.
But buying for the purpose of subsequent sale in a few years, when the cost increases several times, is the safest and safest option.