Right after Libra was announced, people started to want to learn more about cryptocurrency. Financial organizations and even governments claim that Libra can be a problem but the truth is that cryptocurrencies will most likely be the money of the future, whether people like it or not.
It is never too late to start learning about cryptocurrencies. If you do not know much about the coins, here are some important things that have to be mentioned before you head on over to a crypto exchange to buy some Bitcoin or Ethereum.
Your Wallet Cannot Be Lost
When you buy cryptocurrencies, they are stored inside a digital wallet known as crypto wallet. It has private and public keys. The private key is provided in order to gain accesso to the wallet. In the event that the private keys are lost, you will not get back the funds you had. Absolutely all digital funds inside the wallet disappear in the sense that you cannot gain access to them.
When you lose a credit card, you can trace it back and another one can be created to gain access to your funds. You do this by offering ID proof. With cryptocurrency, once you lost the private keys, everything is lost.
The truth is that cryptocurrency is very safe when it comes to wallet safety. However, this does not mean scammers do not exist. They can use your phone or computer to mine new cryptocurrency without you being aware of it. This process is known as cryptojacking and is used by installing a special code on your devices.
Usually, the only way to figure out that cryptojacking happened is that the computer or phone starts to be slower. Alternatively, the battery discharges faster.
The Inventor Of Bitcoin Is Unknown
One of the most interesting facts about cryptocurrency is that the organization or person that created the most popular coin in the world, Bitcoin, is not known. There were countless individuals that claimed that they invented BTC but there was never proof offered.
The creator of Bitcoin is only known by the name Satoshi Nakamoto.
The Value Of Cryptocurrency Is Highly Volatile
There are numerous external factors that impact crypto money value. The problem is that they always depend on trading sense and are very volatile. Value can dramatically swing, leading to very high gains or huge losses. The digital-only presence combined with the huge riskis the main reason why people avoid cryptocurrencies these days.
Most Cryptocurrency Is Mined In China
Cryptocurrency mining practically means that transactions are verified before they are put on the distributed ledger. This is actually a really lucrative business for numerous companies. What may surprise you is that China now controls close to 75% of the entire mining network for Bitcoin.
Cryptocurrency is not understood by most people so if you are interested in the technology and the potential financial gains, it is really important that you stay informed. Always be aware of everything associated with cryptocurrency before you buy a single BTC.