In digital times, digital payment methods and currencies are gaining more and more importance. One of those is crypto, which is also advertised as one of the most reliable payment methods.
As much of a hype that currency once had when it was first founded, some big criminal cases, however, gave it a bad reputation. One of the most famous frauds is the scam of the Bulgarian-born German citizen Ruja Plamenova Ignatova, also called the crypto queen.
Her activities were described by The Times as “one of the biggest scams in history”. Together with her partner Sebastian Greenwood, she founded the cryptocurrency OneCoin and its associated company OneCoin Ltd, whose business model was built on a pyramid scheme.
The company gathered investors from around the world, including China, Germany, the UK, the USA, Hong Kong, India and Uganda. Ruja Plamenova Ignatova was even added to the FBIs list Ten Most Wanted Fugitives.
In the world of online gambling, tales of uncertainty can make you apprehensive about the use of cryptocurrency.
Is it a dependable payment method, as some profess, or does it carry the potential for scams? This article aims to guide your decision-making process, shedding light on the true nature of cryptocurrency, its benefits, and cybersecurity measures.
In turn, it will assist you in forming a well-informed opinion on whether embracing offers at crypto casinos with free spins is a prudent choice; you can use comparison websites like this one, maintaining a balanced and impartial viewpoint.
What Is Crypto Currency?
As mentioned above, crypto is a type of digital or virtual currency. It uses cryptography for security and unlike traditional currencies, cryptocurrencies are decentralized and typically operate on a technology called blockchain.
Explained in simple words, a blockchain is a database that starts with one block. Added on that initial block, new datasets are attached after they have been proven and verified, which eventually creates a chain of many different blocks and therefore a history of datasets.
Due to the encryption of the data, a blockchain is a safe way to spread data across a network.
Other characteristics of crypto currency besides the blockchain is also the limited supply with a maximum number of coins or tokens that can ever be created.
Bitcoin for example has a maximum supply of 21 million coins, while Ripple (XRP) has 100 billion as a maximum supply, which was pre-mined. XRP cannot be mined like Bitcoin. Litecoin on the other hand has a maximum supply of 84 billion coins.
Well known crypto currencies are the mentioned Bitcoin, Ehtereum, Ripple (XRP) and Litecoin, each of them having unique features and use cases.
These currencies have gained attention for their potential to disrupt traditional financial systems and enable innovative applications beyond just digital money. However, their adoption and regulatory status vary by country and region.
Benefits Of Crypto Currency And Security
Cryptocurrencies are also perfect to use for international transactions since they are not subject to traditional banking hours or cross-border fees.
They are globally accessible and can be used by anyone with an internet connection. This is especially valuable for the unbanked or underbanked populations.
Another benefit is also the speed: Cryptocurrency transactions can be processed quickly, especially in comparison to traditional banking systems.
However, they are also known for their price volatility, which is both an advantage and a disadvantage. The value of a cryptocurrency can fluctuate significantly over short periods, making them attractive to investors but also potentially risky for everyday transactions.
On the other hand, the users have full control over their funds sind they can send and receive funds directly to and from one another without the need for intermediaries like banks.
This puts investors and everyday users in full charge of their financial assets. Instead of banks and financial institutes, digital wallet addresses are commonly used.
This also creates another benefits: Low Transaction costs due to lower fees. This can be cost-effective, particularly for cross-border transactions.
Security is actually also often mentioned when it comes to the benefits of crypto. Due to their use of the blockchain technology, cryptocurrency transactions are considered secure.
Nevertheless, they are not immune to hacking, scams, and fraud – as you will know since you are reading this article. But those big frauds and scams are also beneficial to the cyber security of crypto currencies since they are used to make crypto even safer.
Nowadays users are nudged to take proper security precautions to protect their cryptocurrency wallets, which significantly limits the possibility of being scammed and makes crypto more than ever a reliable payment method.