In addition to cash money, cryptocurrencies under the English collective term cryptocurrency are developing at a rapid pace. They are imaginary coins that consist of a unique sequence of numbers and numbers. These coins find their way with deals on the internet. Regulations and supervision such as with conventional money transactions are approaching with these deals. Therefore, be sure to take some time to familiarize yourself with cryptocurrency before making serious transactions.

Cryptocurrency

There are now a few hundred crypto coins, of which Bitcoin (BTC) is currently the best known. The Ether (ETH) is also a well-known in the family of crypto prices. It is a Meme token (access right) intended to realize asset and property rights (smart contracts).

What is cryptocurrency?

Cryptocurrencies are located on a large network of computers that constantly perform (cryptographic) calculations. To ensure that all digital currencies are immutably and securely stored in the network. The special thing is that this currency cannot be counterfeited or broken. Every currency in the network has a password that only its owner has. With the password, the owner uses his currency units to pay, transfer or cash in. Paying with cryptocurrency is a lot like sending an email containing a password. The recipient can access the cryptocurrency with that password. Like euros, cryptocurrency can be divided into smaller units like cents, up to 8 decimal places. The modern technology that supports the network of computers with complex calculations is called blockchain technology .

How do you pay?

Paying with cryptocurrency is easy. On the web, you do this with a payment program or app. If you pay with cryptocurrency in a shop or a catering facility, you use a smartphone. You store cryptocurrency in a digital wallet or wallet. There are different types of wallets. Do you have a digital wallet? Then you can receive, transfer and store cryptocurrency. You buy the crypto coins on the internet or from other users with cash for the current crypto price.

Cryptocurrency as a payment method

EU finance ministers will not allow cryptocurrency as a payment method until the risks, rules and oversight have been properly identified and addressed. They do admit that ‘stablecoins’ (linked to the dollar or euro exchange rate) offer options for cheap and fast, especially cross-border, payments. Without legal measures, there are risks with cryptocurrencies for consumers and investors and for financial and monetary stability, the ministers say. They want a coordinated comprehensive approach involving the European Central Bank (ECB) and national and European supervisors.

What are the advantages?

Transactions between sender and receiver take place directly, without intermediaries.
The technology is always available ‘in the cloud’. Handy for international trade.
The data is reliable because all transactions are verified decentrally. The system is also more resistant to cyber attacks because the information is stored in different locations in the network.

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