There are many aspects in which we can easily differentiate between Cryptocurrencies and traditional currencies. Some of these are as follow:

  • Decentralization:- In Traditional currencies, its nucleus is located in a country or in a group of countries who governed them under some authorities, departments, protocols, and policies. Every transaction of traditional currency undergoes a banking system and procedure where people get charged with huge fees and rates¬†

Whereas, In Cryptocurrencies, it is global. Thus no specific financial organization has direct control over it. It is a decentralized system that works on cooperation and proper communication among all the people taking part.

  • Durability:- Cryptocurrencies are present virtually, which means it can’t get damaged. People who buy cryptocurrency remain everlasting without any harm or destruction.

However, Traditional currencies are physically present and can get damaged or steal easily by any third party, which could be a problematic situation for the one.

  • Cannot be counterfeited- Cryptocurrencies are the online cash means it is intangible. Therefore it can’t be faked. It works on the technology of blockchain, which ensures its legitimacy and security. So this feature could make one feel free to buy cryptocurrencies.

Most of the Traditional currency is the subject of counterfeiting, which can harm society.

  • Fungibility:- There are some traditional currencies which are fungible like- Dollars and Euros. Many countries accept them, but most of the conventional money is only applicable within specific geographical boundaries of its land.

Cryptocurrencies are the virtual online cash that is applicable and operates worldwide. There are no restrictions on international geographical boundaries, unlike traditional currencies.

Before you buy cryptocurrency

For you to buy cryptocurrency, the very first thing we should keep in mind is, we need a place to store it. In the world of cryptocurrencies, that place is called “wallet.” However, our wallet does not directly contain the cryptocurrency. It holds the primary digital keys and all the essentials to access a cryptocurrency.

 The five mains types of cryptocurrency wallets are:-

  • Desktop:- Desktop is hardware that provides complete control over the transactions, funds, and services. Also, desktop wallets allow users to download the network blocks, which ensures them with the authenticity, legitimacy, and proper security of their transaction.
  • Mobile:- The great advantage of a mobile wallet is that our funds are always in our hands. We can access and analyze them anytime, anywhere we want. It is one of the most convenient modes of payment via scanning QR codes.
  • Online:- There has always been a risk in using an Online wallet because all the user’s private keys, funds are stored on the web online. The risk of hacking increases, as they can easily access the funds online.
  • Hardware:- Hardware wallet allows the user to store the private keys and funds on the portable devices which he can use anywhere.
  • Paper:- The paper wallet is two QR codes; one is the public key, and the other is the private key through which the user can send and receive the cryptocurrency.
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