Cryptocurrencies are digital assets— that you can use as investments and even for online purchases. It is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
- Cryptocurrencies are not backed by a central authority such as a government. Instead, they run across a chain of computers. It is exchanged from peer-to-peer on the web without a middleman.
- Cryptocurrencies are decentralised—which means no government or bank manages how they’re made, what their value is, or how they will be exchanged. All the crypto transactions are secured by cryptography—meaning that it only allows the sender and intended recipient of a message to view its contents.
High interest debt
Cryptocurrency “brokers,” which are mainly exchanges, will be required to issue a 1099-like form disclosing who their customers are. Businesses and exchanges will also be required to file a Form 8300 each time they receive over $10,000.
How to buy ?
Just like the stock market, the crypto market has exchanges or brokers which are the facilitators. These exchanges often charge a fee or commission for each transaction. Some even give rewards for hitting a milestone, some give them as a joining bonus. This policy may differ with each exchange. Unocoin, a Bitcoin trading site, is now allowing its users to buy vouchers from over 90 different brands using Bitcoins. Using these vouchers, you can buy Domino’s pizza, ice cream from Baskin Robbins, beauty and health products from Himalaya, and even home appliances from Prestige.
How can you store your cryptocurrency?
Cryptocurrency can be stored in something called a ‘wallet’, which can be accessed by using your ‘private key’—the crypto equivalent of a super-secure password— without which the crypto owner cannot access the currency. A crypto wallet stores the private keys that give the user access to their cryptocurrencies—allowing one to send and receive cryptocurrencies like Bitcoin and Ethereum. It should be noted that your coins are stored on the blockchain, and the private key is required to authorise transfers of those coins to another person’s wallet.