Why do we need cryptocurrency

The main value and task of digital money is to anonymously and quickly transfer funds from anywhere in the world to any country with a minimum commission. This is the underlying reason why the cryptocurrency has attracted attention. It has become a more convenient and secure alternative to bank transfers.

With the rise in popularity, digital currencies have become a sought-after asset. More and more users began to be interested in the question of how to make money on cryptocurrencies. There are also new options for their use as a means of payment. Today, using cryptocurrency in various countries, you can pay for renting a hotel room, studying at a university, and even buying an airplane.

When bitcoin became popular, it received the status of an investment instrument. Since the number of BTC coins is initially limited (21 million), this cryptocurrency is not subject to inflation. And every year a large number of new crypto projects appear, with different levels of potential. Their popularity and cost are directly related to their effectiveness and benefit to the community.

For example, Ethereum is not deflationary like bitcoin. That is, the number of Ethereum coins is not limited. But on the basis of its blockchain, smart contracts work, which greatly facilitate the implementation of virtual transactions. Plus, numerous useful applications and games are created on the basis of Ethereum. All this makes it a sought-after blockchain project.

The popularity of blockchain games is growing rapidly. Developers create applications that use the computing power of a PC to make them work. There are already projects that have attracted millions of investments. For example, games that allow you to buy virtual land. Hundreds of thousands of dollars are often paid for such square meters. Purchased plots can be advertised or sold at a higher price.

Some companies and startups issue tokens that allow you to buy a stake in their business. Depending on the conditions, token holders can receive shareholder rights or dividend payments.

Cryptotechnologies are constantly evolving, every day offering more and more opportunities for their use. And the popularity of blockchain projects is also growing rapidly, capturing more and more new markets.

How to use cryptocurrency

The use of digital currencies can be different:

  • calculations within a separate project;
  • payment for transactions on a cryptocurrency exchange;
  • capital preservation;
  • profit from the increase in value;
  • payment for services or goods;
  • active trading as a way to earn money.

To conduct transactions to external accounts and receive funds from other users, you will need to select a special wallet. Also, to work with some coins, you need to download their blockchain on a PC. But this condition is not always necessary.

If small amounts are transferred, you can work with web wallets. In this case, everything will happen online, without installing programs on the computer. When you have to transfer or receive tangible amounts of funds, it is better to choose among hardware and desktop wallets.

To send digital currency, just follow a simple sequence of steps:

  • Get the public key (address) from the user who accepts the payment.
  • Enter the received address in the wallet interface.
  • Confirm transfer.

To receive cryptocurrency, it is enough just to transfer your public key to the sender.

Every transaction on the blockchain must be signed by the user sending the funds. For this, a private key is used, which is stored in the wallet.