What is virtual money (crypto)? [Everything about everything you need to know!]

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What is virtual currency?

Are you a new person here? You need to find out information about virtual money, electronic money? If so, congratulations on finding the right article! If you already know, have a look to supplement the knowledge offline!

What is virtual currency?

Virtual moneyCryptocurrency also known by other names such as cryptocurrencies, cryptocurrencies, cryptocurrencies, etc. is a type of digital asset.

Just keep it simple, it's similar to USD ($), or VND (₫) ... but only digital.

So you will not hold or carry with you as usual money. Through the Internet you can exchange this currency easily.

To make financial transactions, cryptocurrencies must use encryption functions. Blockchain is the core element that makes up virtual money.

Blockchain technology makes this encrypted currency immutable, decentralized and transparent.

In the coming years, This could become a popular currency around the world. When the benefits that it brings are undeniable.

Watch now: What is blockchain?

Virtual money uses Blockchain technology

What are the virtual currencies?

As you all know Bitcoin (BTC) is the source of crypto. But there are thousands of virtual currencies on the market today.

As of the time of this writing, there are 3021 types of cryptocurrencies Coinmarketcap. Not to mention there are some coins that haven't been updated yet.

These currencies are growing day by day to prove themselves. Every cryptocurrency has good technology. You can find the coin name in the search section of Blogtienao For more information.

Eg Ethereum (ETH) get used to run decentralized applications (dapper) and smart contracts. There are also notable names like: EOS, LTC, XRP...

Watch now: Virtual money price Currently updated by Blogtienao 24/7

Differences of virtual money and ordinary money

The common point of both currencies is that they are used for payment and are circulated between the parties. Here are the basic differences to distinguish:

Cryptocurrencies vs. regular money

What is a digital wallet?

Because virtual money is non-physical and not tangible as fiat currencies. So the storage of encrypted coins will also be very different.

Electronic wallet (Cryptocurrency Wallet) is the answer to the storage of virtual currencies. This wallet stores your encrypted coins.

It will have an address for you to deposit money into. Simultaneously with Wallet Digital money It can also help you transfer money to other people through the address they provide.

Depending on the different purposes, you will choose different types of wallets. Currently, there are 2 popular types of wallets: cold wallet and hot wallet

  • Hot wallets: Convenient for transactions because it is always connected to the Internet, but because of that, its security is worse than cold wallets. Some common hot wallets: Ledger, Trezor, KeepKey, ...
  • Cold wallets: Suitable for those with long-term storage because of the higher security capacity than hot wallets. Because it is stored offline, theft of assets in a wallet is less likely. Some of the following cold wallets: Atomic, Exodus, Jaxx, Blockchain...

Watch now: What is MyEtherWallet? How to create and use the most detailed MEW wallet

ledger nano s cold wallet
Ledger nano s cold wallet

In Vietnam, is virtual currency legalized?

In Vietnam at present, the virtual currency is not recognized as a currency or a mode of payment.

The laws of our country currently only accept payment methods such as payment orders, checks, payment orders, collection orders, bank cards, collection orders, or other means of payment according to the regulations of the Central Bank. .

Other forms of payment are considered illegal and are prohibited at the same time.

However, trading, exchanging and storing virtual currencies is not prohibited. But the activities involved technical money numbers are not recognized by law.

Therefore, disputes and risks related to money will not be protected by Vietnamese law.

Below is the legal appearance of Bitcoin in countries. If BTC is recognized, then virtual currency is also recognized. Explain the colors in the picture:

  • Green is legal
  • Gold is a controversy, its use is limited
  • Pink is not banned directly
  • Red banned completely or partially

Legality of virtual currencies in countries

Advantages and disadvantages of virtual money

Advantages

  • Fairness: Virtual currency helps you exchange directly between two people without having to through any other third party.
  • Convenience: You only need a smartphone with an Internet connection to be able to trade anytime and anywhere.
  • Fast, cheap: You can transfer money across the country very fast with super cheap fees.
  • High security and safety.

Disadvantages

  • Currently, in some countries, virtual currencies are not yet widely accepted.
  • For people with knowledge of the technology, the use of virtual money becomes simple. And those who do not know yet use it becomes difficult.
  • The price fluctuation is still very large.

Real damage about virtual currency scams in Vietnam

In our country, the majority of scams disguised as virtual currency investment to blind investors. These include Bitconnect, Hextracoin, Ifan, Pincoin, etc.

However, they were soon overturned, leading to the collapse. Recently, the virtual currency market is growing strongly.

So multi-level projects that "rely on" their crypto assets also grow mushrooms after rain.

The common point of this ghost project is that it has been active for a while to call for investment. After that, there will be no loss of mind without a trace causing investors to lose nothing.

Anyone who wants to contribute capital, invest in a project needs to know about that project. And should stay away from projects with huge profits, because its nature only uses money people pay first.

All you hear is just a beautiful story drawn, such as: investing huge profits, withdrawing capital still profitable, high commission, ... As you know the first Virtual currency investment has countless risks.

So projects with huge profits cannot be real and of course those projects are ghost projects, fraud projects.

Thereby we can see that virtual money is not a scam. This is all because some individuals or organizations borrow money from banks using encryption algorithms to set up fraudulent projects.

These projects will entice "prey" who do not master the knowledge of the grid. Since then, those who have been deceived think the nature of virtual currencies to be a scam.

Should we invest in virtual money?

Investing in cryptocurrencies can bring huge profits. However, investors should know that there are two sides to it, along with the profits, it is impossible to avoid the risks.

So you should take the time to learn very well before investing something to avoid being fooled by ghost projects.

Please refer to what Blogtienao mentioned and thereby make the right decision offline!

Virtual money investment

Virtual money investment should start from?

For those who have never been exposed to cryptocurrencies, it's impossible to know where to start.

Everything is quite unclear, so Blogtienao will bring you 1 free course https://blogtienao.com/lop-hoc/. From there help you approach easily and bring high efficiency.

Trade

Long-term investment

If you're an employee, you don't have much time and you want to invest in crypto. Then this is the best solution for you.

This form requires you to be patient, do not care about short-term fluctuations. The mistake of that newcomer is to want to earn really fast.

Want to make money very quickly, the risk of it comes also high. You can be much and also lose white. For newbies, I recommend investing in this form because it is simple.

For example: You see Bitcoin drop to $ 3,200. After analyzing and selecting a good buy point, you decide to buy this price.

By June 26, 06 the price of BTC reached $ 2019. At this price you can sell and wait for a good price to buy.

Your goals are longer term and you believe Bitcoin is the future. You believe that Bitcoin will hook $ 100,000 within a few years, you can store longer.

Long-term cryptocurrency investment

Surf

This type of transaction is for experienced people. This form can bring about quick profits if you are favorable.

With this type of trading you have to spend a lot of time to find shortwaves. That is the price fluctuation of the day.

For example: Each day you have to spend a lot of time to track orders. Each order you win 0.2% and repeat this process many times.

Then within a day if you can easily earn 1-2%. If your capital is $ 10,000, then every day you can surf $ 100-200 if you are convenient.

Of course, you will win and you will lose, so you have to be highly disciplined.

Trade by news

This type of transaction you have to update the news very quickly. Typically, the likelihood of a price increase depends on the impact of the news.

Not all prices will go up. There are news that will be released to manipulate the market.

You have to select which news is likely to increase and which ones are not. This type of transaction has the potential to bring about quick profits but also extremely dangerous.

For example: There is news that the leader of a large nation like China or the United States recognizes Bitcoin. At this point you will buy quickly to wait for opportunities to increase prices and sell.

Short-term transactions

With this type of trading you must learn technical analysis, psychological analysis ... Choose appropriate buying points and set stop losses as well as taking profits in a disciplined manner.

If so, then you can profit with this form of trading.

For example: You are tracking and analyzing NEO. You see NEO will reverse with a profit of 15%. At this point just set a stop loss to reduce risk and take profit at the target set.

Excavators

Mining or mining is the use of software to solve extremely complex mining algorithms to obtain coins.

As long as the miner is connected to the internet, you can do mining. Digging can also be profitable depending on market prices and electricity costs.

To learn more about miners, click on this link: https://blogtienao.com/dao/ to equip the necessary knowledge.

Digging virtual money

Is cryptocurrency "dead"?

With the benefits being brought as: cheap fees, fast delivery, delivery anytime, anywhere. At the same time, virtual currency also brings the merits for two people to trade with each other because it does not go through any central bank or any third party.

Along with the economic crisis, the devaluation of the fiat money is increasing day by day. These include hyperinflation in Venezuela or Zimbabwe with an inflation rate of 79.600.000.000% in 2018.

For the people, their legal money is now no longer valid. When they buy food, they have to carry a sack of money to buy it.

In 2009, when the old currency was removed by the government, 150.000 billion dollars of Zimbabwe were valued at 1 USD.

To solve this problem then Cryptocurrencies is the answer for the people here.

Because virtual currency does not go through any central bank, it will avoid inflation.

For example, Bitcoin, the fixed supply of 21 million BTC and the level of inflation is reduced every 4 years.

With the current volatile economic situation, saving money has brought benefits for us. Through the above evidence, you will have the answer for yourself whether virtual money is "dead" ?.

Virtual money will not die

Conclusion

Blogtienao (BTA) Hopefully, through this article, you will be able to answer questions as well as learn more about them virtual money, electronic money.

For those who are intending to invest in cryptocurrency, you need to understand what you are investing.

Hope Blogtienao will become your soulmate and bring you the latest information, news, knowledge ... virtual money. Please look forward to the next article!

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