Questions That You Need to Ask if You Are New in The World of Crypto
Cryptocurrencies are getting more and more popular nowadays. They are literally the future of eCommerce. Their number is still growing, and there are so many new and maybe less popular virtual currencies you need to know about. Here is the thing, if you are a beginner or you want to know more about this subject- you’re in the right place.
Here are some of the basics:
· What is cryptocurrency?
Shortly, cryptocurrency is a new virtual currency, and its primary role is online paying for goods and services. Their value is continually changing, and it depends on a few factors like demand. You can use them only on the websites that allow paying with these currencies. If you want to pay for something online, you’ll need to exchange real money for accessing the cryptocurrencies. They are working on blockchain eCommerce technology.
· How does blockchain work?
Blockchain is a decentralized system that mostly runs transaction details. Also, this technology tracks the user’s activity, payment processing, and product searching. Combining transaction results in the smaller groups is forming the “block.” When it’s filled, each block is connected to the block before and after it, making a “chain.” Because of its decentralized nature, anyone can see all transactions easily by using blockchain explorers.
· How many cryptocurrencies exist?
According to CoinMarketCap.com, there are more than 6,700 different cryptocurrencies at the moment, and this number is still growing. Their total value is over $650 billion. Definitely, the first and the most popular currency is Bitcoin. It’s the most accepted and widespread virtual currency. We need to mention Ethereum, Bitcoin Cash, Polkadot, Litecoin, and others.
· What is a cryptocurrency wallet?
These wallets are just like any other app on your smartphone, laptop, or tablet. It is designed to store all the cryptocurrencies in the same place. Maybe the most popular wallet for Bitcoin is Trezor. When you make your wallet, you’ll need to decide which type of key you prefer- private or public. Here is the difference:
When talking about the public key, it can be given to anyone, so you can receive the funds. On the other hand, using the private key is a secret. Only you know about it, and it’s like your password- it gives you high security. The wallet’s primary function is helping you to store and spend your cryptocurrencies, but if someone gets your key, you’ll probably lose your virtual money.
This was just an introduction to the new crypto world. We’ve answered some of the fundamental questions anyone should know before a significant step in eCommerce’s modernization. Dealing with these basics will play a significant role in developing your own business that may include cryptocurrencies.