In the millennial era like today where the internet is increasingly rampant, crypto exchanges are becoming more and more popular and are becoming a field of investment. If you are interested in starting to take steps to work in this investment field, then you need to add insight and learn more about what cryptocurrency is and how crypto exchanges work so you don’t take the wrong step.
Definition of Crypto
Cryptocurrency is known as a digital currency or it is also called virtual which can be reviewed through cryptography. Cryptography makes counterfeiting cryptocurrencies impossible.
Blockchain is a place where all the history or records of cryptocurrency transactions are stored properly. The wide spread of blockchain channels its network to many computers so that there are many sources and more secure, the system is called a decentralized system. This means that each user will freely make transactions with fellow users directly without even the help of a third party.
Use of Cryptocurrency
Not only used as a tool for buying and selling transactions, crypto or cryptocurrency is also widely used for investments with profits or long-term projections. This is mostly due to fluctuations or the value of crypto which always goes up and down all the time so many apply a long-term vision.
Laws or rules of demand and supply also apply to it. So if more and more people invest in cryptocurrency, the value will also be higher. It will be very good if you can make analysis efforts and look for crypto at low prices but the revenue will be high in the future.
In several countries, this crypto is also included in the gold commodity which has followed the legal regulations in force in that country and has even been registered with a state institution, which means that its level of legitimacy is beyond doubt.
Even so, state regulations stipulate that this cryptocurrency only applies as investment value and cannot be used as a valid exchange currency for buying and selling transactions.
Crypto Exchange Advantages
- Cryptocurrency is known to be in digital form without any physical form that will take up space and we cannot even touch it. But you don’t need to be disappointed because fiat currency applies, which means that one day you can exchange this crypto for money and withdraw it whenever you want.
- Only with internet media, cryptocurrency users can make transactions between users online and directly in a network known as blockchain. This means that in making transactions, users do not need to use third-party services which will add value and sometimes be detrimental, and this is what is referred to as a decentralized system.
- Another great thing is that the value of the cryptocurrency is the same in every country, so there will be no exchange rate like the currency we use so far, and this is what makes many people interested in crypto.
A very annoying thing is when we want to send money to another country we are required to create an account. Then the currency must be equated with the currency of the destination country and the prevailing exchange rate, where if the destination exchange rate is higher, more money will be required.
What’s more, there is an additional fee for the services of a central bank that assists in the transfer process. Unlike crypto money, we can send it right away without having to go through the annoying things as stated above.
- You don’t need to worry about the privacy and confidentiality of data from using this crypto because all data is properly encrypted even when you are making a transaction. At the time of the transaction, our identity will not be known by the transaction partner and vice versa. Your real name will not be seen and known by anyone, even crypto designation will not be known by many people so confidentiality is very, very protected.
- If you look at it in general, currency transactions between countries will always involve the central bank in the transfer process or procedure, but this is no longer the case in crypto exchanges. This means that each of us must take full control and responsibility for what will happen or the result of this transaction. This is a system known as DeFi or in more detail Decentralization Finance.
- This issue of trust is important, but did you know that in crypto transactions, the system will do everything; including checking and verifying data so you don’t have to bother checking and don’t need to trust anyone? When a transaction is recorded on the blockchain, no one can know anything related to that transaction.
See also : What is Arbitrum Crypto Launchpad?
Example of Cryptocurrencies
In cryptocurrency transactions or exchanges, we can find lots of choices or types of cryptocurrency that you will use. However, this time we will only discuss the top 3 most popular and most used cryptocurrencies so far. Let’s see the review.
1. Kommunitas (KOM)
Kommunitas is more than a “launchpad” or “IDO Platform” – it’s a decentralized crowdfunding ecosystem for web3.0 projects. Beyond fundraising for various blockchain projects (like Ethereum, BSC, Polygon, Solana, Avax, Fantom), it offers comprehensive support: Marketing, Community Management, KOL and VC Connections, SEO, even project development services.
Kommunitas has pioneered groundbreaking concepts like Initial KOMmunity Offering (IKO) for decentralized IDOs and Social Engagement Burning, which rewards engagement across social media with reduced token circulation.
Investors gain not only from capital gains but also through passive Revenue Sharing by holding and staking KOM tokens, earning Stable Coins and KOM Tokens.
2. Bitcoins
Everyone will agree and be familiar with this one cryptocurrency, namely Bitcoin. It is the cryptocurrency with the most users which automatically makes it the most expensive but also the most sought after.
See also : Bitcoin and Launchpad
3. Ethereum
Ethereum also runs like a general cryptocurrency that uses a blockchain system. The striking difference is that Ethereum uses a smart contract system where this system utilizes code to secure the blockchain. There needs to be an agreement on the terms and conditions specified before the two parties involved in the transaction can continue the process to completion.
4. Bitcoin Cash
Bitcoin Cash is a derivative of Bitcoin. Bitcoin Cash is a very popular alternative because many people think it will be able to replace Bitcoin whose price is already too high in the market for some people. So do not be surprised if this is included in the top three most popular.
You must also instill in yourself that investing, trading, or exchanging crypto must begin with careful research and consideration and should not be careless.
So that you can get the best information and provide tips for you, please visit the Kommunitas site as one of the best launchpads and guaranteed security. Hopefully, this review can be useful for you.