3 must-know things about crypto-currencies
A crypto-currency is a virtual currency. It is based on a computer protocol called blockchain. It takes the name of crypto-assets from the moment it is stored on an electronic medium thus allowing a community to accept it as a means of payment and to make transactions. These transactions are carried out without having to resort to legal tender. Here are 3 essential things about crypto-currencies.
The creation of crypto-currencies
Crypto-currencies are created by a community called miners. Indeed, thanks to an algorithm that generates tokens or tokens that are distributed to them, these miners only enjoy their participation in the functioning of the system.
The tokens created or distributed are stored in an electronic safe called wallet which is installed on a computer, a tablet or a laptop. It is possible to transfer them between members of the community anonymously via the internet.
Legality and security of crypto-currencies
At the time of writing, crypto-currencies are not yet regulated. They do not have a legal status and are not recognized as financial instruments. Indeed, their supervision by the public authorities remains embryonic.
Investing in crypto-assets is therefore risky and many scammers operate on the internet. However, many people are making huge profits with crypto-currencies because everyone is free, to choose or not, to get paid in crypto-currencies.
The risks of crypto-currency
Gaining a lot of profit will mean that you have to be prepared to also make enough loss. Before you invest in crypto currency, you should know that there are risks involved.
The price of crypto-currencies is very volatile. This could expose investors to very high financial losses. Also, hacking or hacking sometimes puts the system in trouble. The crypto-currency, by its anonymous nature, could circumvent the rules relating to the fight against money laundering and participate in the financing of criminal activities.