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

What is virtual currency?

Are you a new person here? You need to learn information about virtual money, electronic money? If that's the case, then congratulations, you've found the right article! If you already know, then watch to supplement your knowledge!

What is virtual currency?

Virtual money - Cryptocurrency also known by other names such as: electronic money, cryptocurrency, cryptocurrency, ... is a type of digital asset.

You just understand, it's similar to USD ($), or VND (₫)…but only digital.

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

In order to conduct financial transactions, cryptocurrencies must use cryptographic functions. Blockchain is the core element that makes up virtual currency.

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 currency using Blockchain technology

What virtual currencies are there?

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

As of the time of writing this article, there are 3021 cryptocurrencies on Coinmarketcap. Not to mention there are some coins that have not been updated here.

These coins are growing every day to prove themselves. Every cryptocurrency has good technologies. You can find the coin name in the search section of Blogtienao for more information.

Eg Ethereum (ETH) be used to run decentralized applications (dapper) and smart contracts. In addition, there are still notable names such as: EOS, LTC, XRP...

Watch now: Price of virtual currency Currently updated by Blogtienao 24/7 

Difference between virtual money and regular money

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

Cryptocurrencies vs Regular Money

What is an e-wallet?

Because virtual currencies are non-physical and not as tangible as fiat currencies. So storing encrypted coins will also be very different.

Cryptocurrency Wallet is the answer to storing virtual currencies. This wallet to store your encrypted coins.

It will have an address where you can send money. Simultaneously with Wallet digital money can also help you transfer money to other people through the address they provide.

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

  • Hot wallet: Convenient for transactions because it is always connected to the Internet, but also because of that, its security is less than cold wallet. Some common hot wallets: Ledger, Trezor, Keepkey, ...
  • Cold wallet: Suitable for long-term storage people because of its higher security than hot wallets. Because it is stored offline, it is less likely that the assets in the wallet will be stolen. 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

Is virtual currency legal in Vietnam?

In Vietnam, there is still no recognition of virtual currency as a currency or a payment method.

Currently, our country's law only recognizes 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 prohibited at the same time.

However, buying, selling, exchanging and storing virtual currency is not prohibited. But activities related to technical money number is not recognized by law.

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

Below is a figure of the legality of Bitcoin in the countries. If BTC is recognized, then virtual currency is also recognized. Explanation of the colors in the picture:

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

Legality of virtual currency in countries

Advantages and disadvantages of virtual currency

Advantages

  • Fairness: Virtual currency allows you to exchange directly between two people without having to go 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 extremely fast with super cheap fees.
  • High security and safety.

Disadvantages

  • Currently in some countries virtual currency is not yet widely accepted.
  • For those who are tech-savvy, using virtual currency becomes simple. for those who don't know anything, it becomes difficult to use.
  • The price volatility is still very large.

Facts about virtual currency scams in Vietnam

In our country, most scams are disguised as virtual currency investments to blind investors. Names like Bitconnect, Hextracoin, Ifan, Pincoin can be mentioned.

However, they were soon debunked leading to their downfall. Recently, the virtual currency market is developing strongly.

Therefore, multi-level projects that are "slightly based" on crypto-assets also sprout after the rain.

The common point of this ghost project is that they are all active for a while to call for investment capital. After that, it will be quiet without a trace, causing investors to lose everything.

Anyone who wants to contribute capital or invest in a project needs to learn about that project. And should stay away from projects with huge profits, because its nature only uses money from the latter to pay for the former.

All that you hear is just a beautifully drawn story, such as: investment with huge profits, withdrawing capital is still profitable, enjoying high commissions, etc. As you know the first job. Investing in virtual currency has many potential risks.

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

Thereby we can see that virtual money is not a scam. All because some individuals or organizations borrow money to use cryptographic algorithms to set up scam projects.

These projects will lure the "prey" who do not master the knowledge into the net. Since then, those who are deceived think that the nature of virtual currencies is a scam.

Should I invest in virtual currency?

Investing in virtual currency can bring huge returns. However, investors should know well that everything has two sides, along with the profit earned, the risks cannot be avoided.

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

Please refer to what Blogtienao mentioned and from there make the right decisions!

Invest virtual money

Where to start investing in virtual currency?

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

Things are pretty hazy, so Blogtienao brings you a free course https://blogtienao.com/lop-hoc/. Thereby helping you to approach easily and bring high efficiency.

Trade

Long-term investment

If you are a commuter, 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, regardless of short-term fluctuations. The mistake of newbies is wanting to earn fast.

If you want to make money fast, its risks are also high. You can gain a lot and also lose a lot. For newbies, I recommend investing in this form because it's simple.

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

By the month of 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. If you believe Bitcoin will hit $100,000 within a few years, you can store it longer.

Long-term crypto investment

Surf

This is the type of trading for the experienced. This form can bring quick profits if you are favorable.

With this type of trading you have to spend a lot of time to find the short waves. That is the price movement during the day.

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

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

Of course, if you win, you will also lose, so you must be highly disciplined.

Trading according to the news

In this type of transaction, you have to update the news quickly. Usually, the price is likely to increase depending on the influence of the news.

Not every news will increase the price. There are news that will be released to manipulate the market.

You have to choose which news is likely to increase and which is not. This form of trading has the potential for quick profits but is also extremely dangerous.

For example: There is news that the leader of a large country like China or the US recognizes Bitcoin. At this time, you will buy quickly and wait for the opportunity to increase the price and sell.

Short term trading

With this type of trading you have to learn technical analysis, psychological analysis... Choose the appropriate buy point and set stop loss as well as take profit in a disciplined manner.

Only then will you be profitable with this form of trading.

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

Excavators

Mining or mining is using software to solve extremely complex mining algorithms to get coins.

As long as the miner is connected to the internet, you can do the mining. Mining can also be profitable depending on the market price and electricity bill.

To learn more about coin mining, please click on this link: https://blogtienao.com/dao/ to acquire the necessary knowledge.

Mining virtual currency

Are Cryptocurrencies “Dead”? 

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

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

For people, their fiat money is now worthless. When they buy food, they have to carry a sack of money to buy it.

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

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

Since cryptocurrencies do not go through any central bank, inflation is avoided.

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

With the current volatile economic situation, saving money can be effective for us. Through the above examples, you will have the answer for yourself whether virtual money is "dead"?

Is virtual currency dead?

Conclusion

Blogtienao (BTA) Hopefully, through the above article, you can answer your questions as well as learn more about virtual currency, electronic money.

For those who are intending to invest in the field of cryptocurrency, it is necessary to understand what you are investing in.

Hope Blogtienao will become your soulmate and bring you the latest information, news, knowledge... about virtual money. Stay tuned for the next posts!

4.5/5 - (30 votes)
Pham Quoc Dathttps://phamquocdat.net
I'm just a simple man trying to make my way in the crypto space.
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