Cryptocurrencies may be used to shop for items and services just like fiat — government approved -money like the Naira and Dollars. But unlike fiat, cryptocurrencies are digital and use cryptography to allow for fast, secure online transactions. While cryptocurrencies may be used for everyday transactions, most people have found their interest in cryptocurrencies is to buy and sell them for profit. Bitcoin, the first cryptocurrency was invented 2009 and has grown in reputation since then. However, even with so much popularity, many people have some questions like:

• What is cryptocurrency?
• How do you buy cryptocurrency?
• What is the value of cryptocurrency?
• What does cryptocurrency do?
• Is cryptocurrency worth investing in?

If you happen to be one of the people with these questions, you are in luck. In the following paragraphs, I’d answer these questions and hopefully provide you with your first step into understanding cryptocurrency.

What Is Cryptocurrency?

Cryptocurrency is a type of digital asset — say digital gold — that can be traded or exchanged for other items or services. There are several types of cryptocurrencies out there; in fact, over 3,000 different types of cryptocurrencies exist. Cryptocurrency is built around complex algorithms and engineering and this is why it may seem so difficult to understand.

How do you buy Cryptocurrency?

Cryptocurrency relies on a blockchain that records and stores all crypto exchanges. The blockchain is managed by crypto miners, individuals who make cryptocurrency through more complex engineering and algorithms. Typically, buying cryptocurrency is easy as it takes only a few minutes and steps to be done. You first have to get a cryptocurrency wallet. These wallets are digital platforms where you store, send and receive cryptocurrencies. They are kept amazingly secure through codes made by the user that are extremely hard to hack.

Buying cryptocurrency is as simple as buying something off of an online store. You should simply pick a cryptocurrency exchange platform and from that point, you can use your mastercard to buy cryptocurrency.

What is the value of Cryptocurrency?

Like stocks, the value of cryptocurrency tends to fluctuate day on day. Keeping an eye on the value of certain cryptocurrencies like Bitcoin is a good step to take before deciding to invest in it. You need to be sure that the particular cryptocurrency you are putting resources into is stable.

How can you tell if a cryptocurrency is stable or not? Let’s dive into a basic principle in economics to provide an answer for that. When the demand for something goes up, the value goes up too. However, if the demand drops, the value may drop too. So, the more cryptocurrency that has been issued, the higher the value. And unlike fiat money which has an infinite supply, cryptocurrency caps out at a fixed point.

One other reason the worth of cryptocurrency can change depends on how useful it is.

What do you do with Cryptocurrency?

When you buy items online, you regularly see an option to make payment with a credit/debit card or PayPal. These days, a few online stores provide the option to pay with cryptocurrency. So if you have some cryptocurrency and you are looking to do some online shopping, this is a great way to spend it. One of the most popular use cases for cryptocurrency is the creation of investment portfolios. Like we said earlier, the value of cryptocurrency can go up or down. By making an investment in cryptocurrency, you get the chance to grow that investment even more and make some amazing profits from doing so.

Cryptocurrency has also proved to be a great tool for frictionless cross-border payments, facilitating speedy transactions with low fees — reducing transaction cost by as much as 90%. Cryptocurrencies like bitcoins can be used to send money on a peer- to-peer basis providing users with several benefits over traditional money transfer platforms and banks.

Cryptocurrency users can now send money to Nigeria using their bitcoins at the cheapest exchange rate possible and zero transaction fee. Receivers can immediately receive funds directly into their local account.

Is Cryptocurrency worth investing in?

Cryptocurrency is getting more popular and useful globally. It might not be a terrible idea to begin making an investment in it. Many people have invested in it and have seen positive outcomes. The more you invest, the more likely the value of cryptocurrency to grow.

Cryptocurrency is an interesting ecosystem to get into and definitely worth trying out.

Cryptofully is a digital payment platform that allows users to send money to any Nigerian bank using cryptocurrency. With Cryptofully, users can send and receive crypto payments from anywhere in the world and cash out into any Nigerian bank account.

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