Crypto currency is a digital currency that exists only electronically. Cyrpto currency is no physical coin you use a service that allows you to cash in crypto currency for a physical token. We generally exchange crypto currency with someone online, via phone or computer, without using an intermediary such as bank. Bitcoin and Ether are one of the popular crypto currencies, but there are many different crypto currency brands, and new ones are continuously being created.
How Do People Use Crypto Currency?
People use crypto currency for fast payments to avoid transaction fees that charges by regular banks, or since it offers some anonymity. People also use crypto currency as an investment, hoping the value goes up.
How Do You Get Crypto Currency?
You can buy crypto currency by an online exchange platform. Some people earn crypto currency via a complex procedure called “mining,” which needs advanced computer equipment to solve copious complicated math puzzles.
Where And How Do You Store Crypto Currency?
Crypto currency is stored in a wallet called digital wallet, which can be online, on your computer, or on an external hard drive. But if something undetermined happens like your online exchange platform goes out of business, you send crypto currency to the unauthorized person, you mislay your digital wallet’s password, or your digital wallet is stolen— you will find that no one can help you to recover your funds. And, because you generally transfer crypto currency directly without any interference there is no one who can turn it to if you combat a problem.
How Is Crypto Currency Different From U.S. Dollars?
There are essential differences between crypto currency and traditional currency.
Crypto currency accounts are not backed by any government. Crypto currency accounts are not insured by a government. If you store crypto currency with a 3rd party company, and the company goes out of business or is hacked, the government has no obligation to step in and help get your money back.
Crypto currency values change constantly. The value of a crypto currency can vary rapidly, even changing by the hour. It depends on several factors, like supply & demand. An investment whose worth thousands of dollars today might be worth only hundreds tomorrow? And, if the value goes down then there is no guarantee it will go up again.
Make Payment with Crypto currency
If you are thinking about paying with crypto currency, know that it’s different from paying with a credit card or other traditional payment methods.
- Crypto currency payments do not come with legal protections. Credit cards & debit cards have legal protections if something goes wrong. E.g. if you need to file a dispute regarding your credit cards, your credit card company has a process which help you to get your money back. Crypto currencies typically does not have these facilities.
- Crypto currency payments typically are not reversible. Once you pay with crypto currency, you can usually only get your money back if the person you paid sends it back. Before you buy something via crypto currency, know the reputation of seller, know where the seller is located, and how to contact someone if there is a problem regarding this. Confirm these details through making some research before you pay.
- People talk about crypto currency transactions as anonymous. But the truth is not that simple. Crypto currencies works on block-chain technology.” That is a public list of every crypto currency transaction — both the payment and receipt sides. Depending on the crypto currency, the information added to the block-chain can include details such as transaction amount and the wallet address of sender and recipient. A wallet address is a long string of numbers & letters which linked to your digital wallet.
How To Avoid Crypto currency Scams
Scammers are always finding new ways to pilfer your money using crypto currency. One sure sign of a scam is anyone who says you have to pay through crypto currency. If you pay them, there is no way that your money back almost. Here are some crypto currency scams to watch out for.
What are the Investment and business opportunity scams?
- Some companies promise that you can earn lot of money in a short period of time and get financial freedom.
- Some scammers start with unsolicited offers and say they can help you to grow your money if you give them the crypto currency you have bought or their credentials.
- Some scammers list scam jobs on job portals. They will promise you a job (for a fee), but they will take all your money and personal information.
Points to help you to spot the companies and people to avoid:
- Scammers guarantee that you’ll make money. If they promise you will make a profit, that’s a scam. Even if there is a celebrity testimonials. (Those are easily faked.)
- If scammers promise you to big payouts with guaranteed returns. Nobody can guarantee a return, and double your money.
- Scammers promise give you free money. They will promise it to make it cash or crypto currency, but free money promises are always fake.
- Scammers make bigger claims without details. Smart business people want to understand how their investment works, and where their money is going & good investment advisors want to share that information.
Before you invest your money on crypto currency research online about the company and the crypto currency name, plus words like “review,” “scam,” or “complaint.” See what others are saying.
Social Media Scams
If you read any message on social media or get a message on social media that tells you to send crypto currency, it’s a scam. It the message came from someone you know, or was posted by a celebrity you follow. There is a possibility that their social media accounts have been hacked. Report the scam immediately.