Pluses and minuses of cryptocurrency. What are cryptocurrencies suitable for? From the AK test, a small sample showed that – at least – paying a bill with bitcoins is not so simple. It is clear that cryptocurrencies are not legal tender. In the case of financial products used for investments, investors should not only take into account or evaluate the “magic triangle” income – risk – liquidity (availability), but also the quality of the issuer (the risk of the issuer, such as the ability to financial income) and the risks of the underlying transaction (i.e. an assessment of the economic risks of a product, industry, market, etc.).
With others, these assessment options are largely excluded. Obviously, average consumers cannot “understand” and, thus, evaluate highly fluctuating cryptocurrency indicators. Cryptocurrencies are more of a speculative object than a serious investment opportunity. Where can one buy? Consumers need at least an electronic wallet for storing cryptocurrencies. This is an electronic wallet that can be used, for example, through a mobile application. There are many ways to buy cryptocurrencies and download them to an electronic wallet. In addition to recovery machines that can receive cryptocurrencies, there are bitcoin bonds that can be purchased from tobacco stalls; This bonus can be activated through various websites (for example). There are also shops, where you can buy several Bitcoin items (for example, caps, T-shirts, as well as Bitcoin prepaid cards).
In addition to the shops and stores where you can buy, there are many online platforms on the Internet. AK testers examined 5 platforms and purchased (and subsequently sold) various cryptocurrencies totaling 500 euros. Summary of test results from online platforms (buying cryptocurrency online): Registration and authentication of the client was the same on all platforms.
After the identification of the test buyer was carried out online, sometimes there were delays (illegible documents, disconnection). Some of the platforms visited offered various financial services, in addition to various cryptocurrencies, such as buying shares. Information and contract terms are often in English; The financial language of the portals also contains many abbreviations and technical terms, which suggests that widely publicized trading is intended only for experienced investors.
What are cryptocurrencies? What opportunities Nexxo offers? You need to look at the technical side of digital currency, the so-called blockchain technology. In simple words, a blockchain is an ever-expanding list of records called blocks; These blocks, which are named in English, are connected to each other using technical encryption mechanisms (hash).
The blockchain acts as a decentralized business book that everyone on the network can access independently of each other. What happens in these technical processes? What features does Nexxo offer? Each computer that accesses the blockchain is called a node in English. The so-called full nodes store the entire blockchain on their hard drive for decentralized maintenance and verification. Each new block is downloaded and each transaction is checked. The cryptocurrency website explains this as follows: “Mining is a solution to a mathematical problem in the blockchain. An attempt was made to guess a hash consisting of transaction data and information about the current and previous blocks. This requires an unthinkable amount of experimentation until, finally, a matching hash is found that perfectly matches all the necessary information and can be added as a complete block to the remaining blocks. “
The blockchain represents a new way of storing data transactions that can no longer be changed. Data is not so ordinary on the server, but distributed on many computers. The members of the network that stands above each block chain are interconnected. This allows the exchange of data between peers (i.e., when participants interact in a network). Through communication, transactions between participants can be processed directly, without the need for intermediaries, such as banks, for transfers between them.