7/25/2023 0 Comments Bit coin in us dollars![]() People talk about cryptocurrency transactions as anonymous. Some information about your transactions will likely be public.Before you buy something with cryptocurrency, know the seller’s reputation, by doing some research before you pay. Once you pay with cryptocurrency, you can usually only get your money back if the person you paid sends it back. Cryptocurrency payments typically are not reversible.Cryptocurrencies typically do not come with any such protections. For example, if you need to dispute a purchase, your credit card company has a process to help you get your money back. Credit cards and debit cards have legal protections if something goes wrong. Cryptocurrency payments do not come with legal protections.There are many ways that paying with cryptocurrency is different from paying with a credit card or other traditional payment methods. And, if the value goes down, there’s no guarantee it will go up again. An investment that’s worth thousands of dollars today might be worth only hundreds tomorrow. Cryptocurrencies tend to be more volatile than more traditional investments, such as stocks and bonds. It depends on many factors, including supply and demand. And the amount of the change can be significant. The value of a cryptocurrency can change rapidly, even changing by the hour. Cryptocurrency values change constantly.If something happens to your account or cryptocurrency funds - for example, the company that provides storage for your wallet goes out of business or is hacked - the government has no obligation to step in and help get your money back. dollars deposited into an FDIC insured bank account. Cryptocurrency held in accounts is not insured by a government like U.S. Cryptocurrency accounts are not backed by a government.Dollars?īecause cryptocurrency exists only online, there are important differences between cryptocurrency and traditional currency, like U.S. How is cryptocurrency different from U.S. If something happens to your wallet or your cryptocurrency funds - like your online exchange platform goes out of business, you send cryptocurrency to the wrong person, you lose the password to your digital wallet, or your digital wallet is stolen or compromised - you’re likely to find that no one can step in to help you recover your funds. A digital wallet has a wallet address, which is usually a long string of numbers and letters. Where and how do you store cryptocurrency?Ĭryptocurrency is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. ![]() Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computer equipment to solve highly complicated math puzzles. You can buy cryptocurrency through an exchange, an app, a website, or a cryptocurrency ATM. ![]() Others hold cryptocurrency as an investment, hoping the value goes up. People use cryptocurrency for many reasons - quick payments, to avoid transaction fees that traditional banks charge, or because it offers some anonymity.
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