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What you need to know about CryptoCurrency

What is CryptoCurrency?

Cryptocurrency or digital currency is the new form of currency that has become the topic of conversation in recent weeks. You hear some types of digital currency being called “coins” and others being called “tokens”. There are even digital coins being called “pyramid scams”. The cryptocurrencies go by many names, such as BitCoin, LiteCoin and Ethereum. They are real, yet you can’t touch or feel physically. Currently, there are over 1,300 of them!

Many people are speculating that some of the many cryptocurrencies will grow to replace the paper money (fiat currency) as digital currency stored in your wallet or purse. Others think of them simply as a passing fad or a bubble, that will leave many investors regretting their investments.

Change The Way You Think about Money!

With cryptocurrency, changing the way you see money may include:

  • Researching any new coin before acquiring it, to avoid the every growing pool of scam coins.
  • Storing coins in your digital wallet and keeping track of the current value of those coins.
  • Paying for things by sending coins to the recipients digital wallet address similar to sending an email.
  • Creating backups of your wallet file, wallet address and secret key.

“Digital coins” are now stored in a “digital wallet” and instead of keeping your money in a bank. Digital Wallets are programs you download onto your local computer that store the specific currency’s blockchain which contain all existing transactions to date. These wallets have a unique hash number assigned to it, which allows others to send coins directly from sender to recipient. There is no need for anyone in-between asking for a fee or knowing either parties identities. Digital Exchanges are sites like CoinBase, that allow you to store wallets and also buy and sell currency. You may also opt to keep some of your coins online, in a place called a Digital Exchange. You can think of these digital exchanges like banks, where you store your money in several accounts and sometimes you can exchange foreign currency.

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