Cryptocurrencies
For purchasing cryptocurrencies, there are several options which we will discuss in the article.
What are cryptocurrencies?
Cryptocurrencies are simplified to be digital money. While Bitcoin (BTC) serves solely for transactions, cryptocurrencies like Ethereum (ETH) are not just a payment system, but they allow for ‘smart contracts’ and running virtual applications, among other things.
What use do cryptocurrencies have?
Cryptocurrencies aim to be the path to an alternative financial system, which today is dependent on large debts and printing money. Opinions on whether cryptocurrencies are more of a payment instrument or technology are still varying, and it’s important to remember that the entire cryptocurrency field is still in its infancy. When sending money abroad, it is complex today; you must fill out an IBAN, and meaningless information such as the bank’s address in the recipient’s country, among other details. For the entire transfer, you will pay unreasonably high fees, and the payment often arrives after several days. With the use of cryptocurrencies, it is possible to make payments in a much simpler, cheaper, and almost instantaneous way.
How can I get some crypto?
You can obtain cryptocurrencies in several ways: by buying (for example, on an exchange), mining, receiving them as a donation, or exchanging them for other cryptocurrencies.
Where should I store crypto?
It is ideal for everyone to store cryptocurrencies in a hardware wallet (e.g., Trezor, Ledger). It is not recommended to keep cryptocurrencies stored on an exchange long-term, as they are not safe on an exchange, just like money in a bank account. Deposits are not insured, and if a hacker attacks the exchange or a significant technical error occurs, you can lose your cryptocurrencies without compensation. Of course, it depends on the amount of cryptocurrencies. If you have cryptocurrencies worth thousands of koruna, you can use a software wallet, for example, on your mobile phone. For larger amounts, it pays to invest in a hardware wallet, which is the only one that provides maximum security and protection for your cryptocurrencies.
