Amid the growing adoption of institutional cryptocurrencies, it appears that Blackrock - the world's largest asset manager - has now an eye on this rapidly expanding cryptocurrency space.
Are you a new person here? You need to find out information about virtual money, electronic money? You don't understand what they are, whether they are safe to invest in and what their properties are. So please find out the following article to update information.
What is virtual money?
Virtual money - Cryptocurrency also known by other names such as cryptocurrencies, cryptocurrencies, cryptocurrencies, etc. is a type of digital asset.
You just understand, it is similar to USD ($), or VND (₫) ... but only digital.
So you will not hold or carry with you as usual money. Through the Internet you can exchange this currency easily.
To make financial transactions, cryptocurrencies must use encryption functions. Blockchain is the core element that makes up virtual money.
Blockchain technology makes this encrypted currency immutable, decentralized and transparent.
In the coming years, it could become a popular currency around the world. When the benefits that it brings are undeniable.
What are the virtual currencies?
As you all know Bitcoin (BTC) is the source of crypto. But there are thousands of virtual currencies on the market today.
As of the time of this writing, there are 3021 types of cryptocurrencies Coinmarket cap. Not to mention there are some coins that haven't been updated yet.
These currencies are growing day by day to prove themselves. Every cryptocurrency has good technology. Eg Ethereum (ETH) get used to run decentralized applications (Dapper) and smart contracts. There are also notable names like: EOS, LTC, XRP...
What is a digital wallet?
Because virtual money is non-physical and not tangible as fiat currencies. So the storage of encrypted coins will also be very different.
Electronic wallet( Cryptocurrency Wallet) is the answer to the storage of virtual currencies. This wallet stores your encrypted coins.
It will have an address for you to deposit money into. Simultaneously with Wallet Digital money. It can also help you transfer money to other people through the address they provide.
Depending on the different purposes, you will choose different types of wallets. Currently, there are 2 popular types of wallets: cold wallet and hot wallet
- Hot wallets: Convenient for transactions because it is always connected to the Internet, but because of that, its security is worse than cold wallets. Some common hot wallets: Ledger, Trezor, KeepKey, ...
- Cold wallets: Suitable for those with long-term storage because of the higher security capacity than hot wallets. Because it is stored offline, theft of assets in a wallet is less likely. Some of the following cold wallets: Atomic, Exodus, Jaxx, Blockchain...
In Vietnam, is virtual currency legalized?
In Vietnam at present, the virtual currency is not recognized as a currency or a mode of payment.
The laws of our country currently only accept payment methods such as payment orders, checks, payment orders, collection orders, bank cards, collection orders, or other means of payment according to the regulations of the Central Bank. .
However, trading, exchanging and storing virtual currencies is not prohibited. But the activities involved technical money numbers are not recognized by law. Therefore, disputes and risks related to money will not be protected by Vietnamese law.
But as long as you have the fullest view, the cryptocurrency market is not a scary place, it has real potential. Keep updated with new knowledge on KDG's bulletin board!
Advantages and disadvantages of virtual money
- Fairness: Virtual currency helps you exchange directly between two people without having to through any other third party.
- Convenience: You only need a smartphone with an Internet connection to be able to trade anytime and anywhere.
- Fast, cheap: You can transfer money across the country very fast with super cheap fees.
- High security and safety.
- Currently, in some countries, virtual currencies are not yet widely accepted.
- For people with knowledge of the technology, the use of virtual money becomes simple. And those who do not know yet use it becomes difficult.
Is cryptocurrency "dead"?
With the benefits being brought as: cheap fees, fast delivery, delivery anytime, anywhere. At the same time, virtual currency also brings the merits for two people to trade with each other because it does not go through any central bank or any third party.
Along with the economic crisis, the devaluation of the fiat money is increasing day by day. These include hyperinflation in Venezuela or Zimbabwe with an inflation rate of 79.600.000.000% in 2018.
For the people, their legal money is now no longer valid. When they buy food, they have to carry a sack of money to buy it.
In 2009 when the old currency was deleted by the government, $ 150.000 Zimbabwe was valued at $ 1.
To solve this problem then Cryptocurrencies is the answer for the people here. Because virtual currency does not go through any central bank, it will avoid inflation. For example, Bitcoin, the fixed supply of 21 million BTC and the level of inflation is reduced every 4 years.
With the current volatile economic situation, saving money is effective for us. Through the above evidence, you will have the answer for yourself that whether virtual money will "die"? I am not 100% sure whether virtual money will die or not, but at this time cryptocurrencies can be said to be a potential market that you can refer to.
KDG Hopefully, through this article, you will be able to answer questions as well as learn more about them virtual money, electronic money.
For those who are intending to invest in cryptocurrency, you need to understand what you are investing. So you can continuously update the latest information on our website to have the most complete view of this promising cryptocurrency market.