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Cryptocurrencies have been in the News in the last few years, with Bitcoin, the first cryptocurrency in the world, taking center stage. An anonymous person or group called Satoshi Nakamoto created it in 2009. Cryptocurrencies provide people with a large number of advantages over traditional currencies. They are decentralized and free from inflation as they are not controlled by the government or any financial institution. This trait makes them resistant to any censorship and fraudulent activities. Moreover, you can use cryptocurrencies globally, and everyone can use them. They are confidential and secure because they operate on blockchain technology.
Kavan Choksi and an insight into the blockchain technology
Business expert Kavan Choksi states that Bitcoin and all the other cryptocurrencies in the world operate on blockchain technology. The blockchain refers to an individual digital ledger that has all the cryptocurrency transactions. It constantly grows when completed blocks of data sets are added to it on a regular basis. Each of these blocks has a cryptographic hash code of the previously completed block, transactional data, and a timestamp. The nodes of Bitcoin use blockchain technology to separate legitimate transactions from attempts made to re-spend the coins that have been spent already elsewhere.
Buying guide – Dos and Don’ts
If you wish to purchase cryptocurrencies, you would need to get a digital wallet first. This is the wallet you will use for storing your crypto coins like a bank account. There are many digital wallets in the market, and you can pick any one that syncs in with your preferences and needs.
When you set up your wallet and store your coins in it, you can use a cryptocurrency exchange to buy or trade crypto coins in exchange for digital assets or traditional fiat money. You should be aware of the exchange fees and charges before carrying out these transactions. Remember that bank transfers are cheaper than using debit or credit cards for carrying out transactions. Before you make any purchase, check the price of the cryptocurrency as they change regularly. So, make sure you research well before you conduct an investment or trade. It is prudent to read resources about cryptocurrencies or consult a skilled financial advisor in the field before purchasing or trading, especially if you are a beginner!
Cryptocurrencies have the potential to transform and impact the world
According to Kavan Choksi, you should be well aware of the pros and cons of cryptocurrencies, as, like everything else, they are not entirely free from risks. Education about financial risk management will help you to make informed choices as the cryptocurrency market is highly volatile in nature.
Once you have this knowledge, you can earn profits from trading as well. Remember, cryptocurrencies have the ability to revolutionize the manner in which the world conducts business today. For instance, they can be deployed to make decentralized applications (dApps).
dApps are those applications that operate on a decentralized network like the Ethereum blockchain, and they are not subject to any control by a central authority. dApps will impact several industries like banking to social media in the future so that cryptocurrencies will occupy a prominent role in the future soon.
