What Is Cryptocurrency?
Cryptocurrency is a digital token that uses cryptography for its security. Unlike traditional currencies made by governments, digital money is not controlled by any central authority. Bitcoin, which was created in 2009, is the first cryptocurrency in the world. Since that year, many other cryptocurrencies such as Ethereum, Ripple, and Litecoin, have been invented. You can use cryptocurrencies for various purposes, including online shopping, investing money, and peer-to-peer transactions.
History of Cryptocurrency
Although the true identity of crypto inventors has never been revealed, people believe that a group of programmers -Satoshi Nakamoto- invented Bitcoin in 2009. They created cryptocurrencies for performing transactions, without the need for intermediaries like banks or governments.
The technology that made Bitcoin is blockchain, which is a distributed ledger that records all transactions across a network of computers. The blockchain technology, which facilitates the process of recording transactions, allows for the creation and verification of digital money.
After the invention of Bitcoin, many other cryptocurrencies started to emerge. Each of these crypto coins has its unique features and purposes. People create cryptocurrencies through a process called “mining,” in which powerful computers solve mathematical problems to record transactions on the blockchain.
Ever since cryptocurrencies are created, they have been very popular because of their security, and the ability to bypass traditional banking systems. They have also attracted investors who are looking for extra profit in a short time.
What Are Cryptocurrencies Used for?Â
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Peer-to-peer transactions
People use cryptocurrencies to send and receive payments directly and without the need for intermediaries like banks or payment processors. This allows for faster and cheaper transactions, especially for cross-border payments.
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Investment
Many people see cryptocurrencies as a worthy investment opportunity. They buy and keep cryptocurrency in the hope that its value will increase over time.
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Remittances
People use cryptocurrencies to send money abroad, especially to countries with banking sanctions. This is quite faster and cheaper than transferring money in traditional methods.
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Smart contracts
Some cryptocurrencies, like Ethereum, can be used for executing smart contracts (digital agreements). Cryptocurrencies can automatically facilitate, verify, and enforce the performance of a contract without the need for intermediaries.
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Fundraising
People use cryptocurrencies as a means of raising funds through Initial Coin Offerings (ICOs). Companies, or people, can create their cryptocurrency tokens and sell them to investors to raise funds for charity purposes.
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Privacy
Trading and using cryptocurrencies has high security and can be done anonymously. Although the blockchain transactions are public, the identity of the people who perform them can be unknown.
Cryptocurrency Features and Benefits
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Track your portfolio
If you own a cryptocurrency, knowing their current prices allows you to monitor the value of your investments. You can use price-tracking apps, websites, or Telegram bots to keep an eye on the market. It also helps you make informed decisions about buying, selling, or holding your assets.
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Make trading decisions
Traders often use real-time price data to:
- Analyze market trends;
- Identify potential buying and selling opportunities; and
- Finish their trades.
Stay updated on cryptocurrency prices to make a profit in market fluctuations. Various factors such as news, regulatory changes, and market sentiment influence cryptocurrency prices. By checking the prices frequently, you can stay informed about the latest changes in the crypto world.
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Compare different cryptocurrencies
If you are considering investing in a new cryptocurrency, knowing its current price allows you to compare it with other ones. In other words, you should evaluate factors such as market capitalization, price movements, and previous data about different crypto coins. Then, you can make a wise decision about which cryptocurrency to invest in.
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Monitor market trends
Cryptocurrency prices can provide insights into overall market trends. Analyze price charts and previous records to identify the trends, and predict future prices.
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Calculate profits and losses
If you have bought cryptocurrencies in the past, knowing their current prices enables you to calculate your profits accurately. Also, if you have sold them, you can evaluate your loss and learn from it.
Tracking Crypto Price FastÂ
You can use different websites, apps, or Telegram bots to track crypto prices fast. Since checking websites and applications for getting real-time crypto prices is time-consuming, many traders and investors prefer using crypto bots.
SmartBotsLand has created a bot that automatically sends crypto prices in whatever interval you wish. For example, you can set your bot timer for 5 minutes, so that it sends the real-time prices every 5 minutes. It’s worth mentioning that our crypto bot receives its data from Binance. Feel Free to contact the SmartBotsLand Support team if you have any further questions.
