What is cryptocurrency?
Cryptocurrency (“crypto” for short) is a digital currency with no physical form. It runs on a peer-to-peer network of computers, rather than on a central bank or company to handle the processing. There are only 21 million bitcoins in the world, and they’re not widely available. Bitcoin was the first widely used cryptocurrency, but it’s not the only one.
Why people use it: The biggest reason people use cryptocurrency is to make it easy for people and businesses to transfer money around the world without fees. Another reason is its ability to track transactions and detect fake money and counterfeit transactions.
How to recognize a scam
You might find yourself conversing with someone online or they may come across you online, such as when they contact your email, phone number or social media, to ask you to send them bitcoins or other cryptocurrencies. Scammers send messages on social media in an attempt to get you to send them money. You may even get a request to transfer your money to an online wallet. If you’re asked for money in exchange for what appears to be bitcoin, the transaction appears to be legitimate, but in reality the person may be fraudulently using your funds.
They might also ask you to send them money and request it be sent to the Bitcoin or cryptocurrency address they provide.
Tips for preventing hacking and theft
The most significant difference between cryptocurrencies and traditional cash is the ability to instantly transfer coins without needing a middleman to process payments. You may also lose access to your coins, which can be attributed to the constant and continued security issues and hack attempts facing cryptocurrencies.
Some people are paid in cryptocurrency for performing services, such as selling you content, goods, or ads.
Since no single person has complete control over the money supply of the cryptocurrency, that means the entire community can collectively shut down transactions in the system.
When Bitcoin was the most popular cryptocurrency, it was one of the most volatile ways to invest. A lot of people thought it was a good opportunity to start a career in Bitcoin.