Cryptocurrencies are an alternative form of payment that keeps growing in the number of its supporters. They are governed by slightly different laws than traditional money, but they can still be converted to different popular currencies. The tool used for that is called a cryptocurrency calculator.
- Cryptocurrencies – a new payment method
- Cryptocurrency calculator: how to check the prices? Converter
- What are cryptocurrencies?
- Where did the idea for digital currencies come from? Converter?
- Bitcoin – number 1 on the market
- Ethereum (ETH) – another famous cryptocurrency
- Different functionalities of Bitcoin
- Investments on the cryptocurrency market – calculator
- Dangers related to cryptocurrencies
Cryptocurrencies – a new payment method
Cryptocurrencies keep getting more and more popular every year. It is without a doubt thanks to the media, which writes about the digital currencies in terms of important trading events, in relation to spectacular cyberattacks or as a result of increased interest in the topic. The most often used cryptocurrencies, such as bitcoin, ethereum or stellar, are getting included to a growing degree by state governments in the legislative activity. Legal regulations are being made in different countries that are either favorable to development of cryptocurrency networks or the opposite – they make it difficult or downright impossible for their citizens to use digital money. Implementation of legal acts that contain detailed regulations on using cryptocurrencies is possibly the clearest proof for their expansion. Cryptocurrencies, as it turns out, have the kind of benefits to offer that the traditional money cannot give. It is no wonder that the number of enthusiasts of this new payment method just keeps growing.
All we have to do to use cryptocurrencies is set up a virtual wallet and make a purchase of the currency we’re interested in. It might be bitcoin (BTC), ethereum (ETH), monero (XMR), binance coin (BNB), lisk (LSK), cardano (ADA), NEO (NEO), litecoin (LTC), stellar (XLM), Bitcoin Cash (BCH), IOTA, Ripple (XRP) or any other cryptocurrency. Before making a transaction, it’s a good idea to look up the latest exchange rate. A useful tool that allows to estimate the value of virtual money is a cryptocurrency calculator.
Cryptocurrency calculator: how to check the prices? Converter
A cryptocurrency calculator is an easy to use tool that allows to make sure how much a particular cryptocurrency is actually worth right now. It accumulates information on exchange rates on an ongoing basis, it updates the database 24h a day. All you have to do is enter the current exchange rate in the right field and the cryptocurrency converter will provide the equivalent in USD, EUR or any other traditional value.
A cryptocurrency calculator also makes it possible to perform calculations the opposite way, which means that after entering a specific amount in USD or EUR the converter provides the equivalent in BTC, ADA, LTC, XMR or any other cryptocurrency. The whole process takes literally a moment – all you need is a Few clicks and you know how much you will pay for a particular cryptocurrency. This useful tool will allow you to stay up to date with the latest exchange rates. You can find them on nearly any website directed at investors. Which is why we encourage you to use a calculator.
What are cryptocurrencies?
Cryptocurrencies are, simply put, digital money. Every cryptocurrency functions usually within an extensive p2p network based on the blockchain technology. The users of such networks can conduct transactions with each others using the cryptocurrency. In decentralized cryptocurrency systems (which is most of them) all the transactions conducted are recorded in a ledger available to every user. A user keeps a copy of such ledger on their own computer and that’s why the ownership status of individual people should not be a point of dispute here. That’s one of the greatest advantages of cryptocurrency systems. In the traditional money circulation, the ledger with all the finalized transactions is in possession of banks, which can alter it, overwrite it and update it as they please. The employees of banks, however, are people, and they can often make mistakes. A cryptocurrency system pretty much rules out the possibility of making errors – it is just pure mathematics here.
The first part of the word cryptocurrency comes from the concept of cryptography, which means a branch of science focused on information encryption. An advanced cryptographic technology is an integral component of a cryptocurrency. It ensures transaction security, generates monetary units based on algorithms as well as makes it possible to exchange them with other users of the network.
A digital currency, just like a traditional one, is subject to various circumstances that impact its value. It is to a lesser degree prone to macroeconomic factors, but on the other hand it is characterized by lower stability and huge price fluctuations. Which makes it all the more important to use proven tools such as a cryptocurrency converter. Due to the dynamically developing exchange rates, every investor as well as regular user should use a calculator before making any purchase. That way you will know the value of exchange rate and won’t put yourself at risk of disastrous financial losses.
A characteristic that makes cryptocurrencies stand out is their Entirely virtual nature. A bitcoin cannot be touched or sniffed, it cannot be withdrawn from an ATM – that’s just a piece of information circulating around a p2p network. Such information is located outside of the banking circulation and the traditional payment system regulated by state governments. Despite the growing popularity of digital currencies, they are still a marginal phenomenon. The points of service and sale that accept payments in BTC, ETH or XMR are still relatively rare. Their number keeps growing every year, though, which could lead one to assume that maybe in the future cryptocurrencies will become a full-fledged, widely accepted payment method.
Where did the idea for digital currencies come from? Converter?
One could ask the question: what goal motivated the creators of first cryptocurrencies? Where did the idea for virtual money come from? Is it just an attractive trick, or maybe a major convenience that most people are however still not convinced about?
Cryptocurrencies by definition were supposed to improve the financial circulation, which in the era of the Internet demands new technological solutions. Nobody is surprised anymore by electronic money transfers, proximity payments or bank account management through a WWW page. It’s an integral element of our everyday reality. The number of people using cash keeps decreasing, money has become an abstract concept. All kinds of payments are in most cases executed with a Few clicks that cause the digits indicating our ownership status to either change their position or get replaced with other digits. We get an e-mail with transfer confirmation and pretty much only the goods purchased are the sole tangible proof that we have made the transaction. Everything takes place online, somewhere on servers, without the slightest contact with cold hard cash.
Cryptocurrencies, according to their originators, are meant to constitute the next link in the evolution of financial markets. They are better adapted to the Internet environment than traditional money (regardless of the conveniences of electronic banking). They have an Entirely virtual nature and they function way differently. They are characterized by bigger independence from financial market fluctuations, they remain outside the sphere of influence of any institutions. Digital currencies in concept were therefore meant to be a payment method free from the flaws of traditional money.
And despite the sector of traditional financial services bravely resisting the Expansion of cryptocurrencies, improving their offer to keep up with the times, the cryptocurrency networks are still gaining in value and they may possibly become quite a competition to traditional money. The opinions on the issue are still divided – some people see an inevitable future in cryptocurrencies, others question them having major value, pointing to the flaws of such systems as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), IOTA, NEO, Cardano (ADA), Monero, Ripple (XRP) or EOS (we’ve discussed them on our website before). Regardless of the differences in attitudes, however, the growing influence of cryptocurrencies on the world of finances remains a fact.
Bitcoin – number 1 on the market
The digital currency market keeps growing year by year. Currently it includes more than 1,000 cryptocurrencies developed in different parts of the world, from Europe, to Asia, Australia, all the way to Africa. The global reach of this phenomenon proves the incredible popularity of decentralized monetary systems. Their unquestionable icon is Bitcoin (BTC) – the fastest growing cryptocurrency market of all that have been created so far. While there were attempts before Bitcoin to create strictly digital currencies, they were unsuccessful. It wasn’t until Bitcoin was made in 2009 when cryptocurrencies became popular.
The success of Bitcoin arises to a large degree from the innovative blockchain technology that lies at its base. It makes it possible to instantly add new transactions to the ledger of existing ones, using advanced algorithms that provide users with security. In other words, a blockchain is a decentralized database that Operates within a p2p (peer to peer) network: each “block” in the network contains encrypted information on the last “block”, which results in a chain of connected blocks (hence the name). Every modification performed within a single block inevitably leads to changes in the remaining blocks. This ensures high level security in the network that couldn’t be found in the traditional financial circulation, based on a central role of the banks, which have an unlimited possibility of altering their financial records.
The blockchain technology provides the users with access to detailed data on all the translations that have taken place so far within the system. Another advantage of a chain of blocks is the Anonymous nature of payments. All operations are encrypted, and if you want to join the ranks of users, you don’t have to disclose any personal data. From a purely technological point of view, blockchain is much safer than the standard security measures utilized by banks. However, it is still vulnerable to hacker attacks.
Plenty of investors treat bitcoin not as a currency to buy something with, but as a commodity that can be resold at a profit. The media keeps highlighting successes of individual investors who were able to make money selling bitcoin. Such lucky cases encourage others to further invest, which helps the system grow (increasing demand has a direct impact on prices). During late 2017 and early 2018, there were nearly 17 million bitcoins in circulation! Putting your savings in cryptocurrencies, as it therefore turns out, might be a creative way to grow your wealth.
Ethereum (ETH) – another famous cryptocurrency
The Ethereum cryptocurrency system operates in a way similar to Bitcoin. It is much younger, though – it was made in 2015. It allows you to send and receive tokens, which play the role of the means of payment here. Of course it isn’t accepted everywhere, but there’s a constantly growing number of stores and service facilities that accept this form of payment. Major popularity was also gained by such cryptocurrencies as Binance Coin (BNB), Ripple (XRP) or Litecoin (LTC).
Different functionalities of Bitcoin
Bitcoin is a virtual payment method that can be utilized in many different ways. Special apps created for Bitcoin users have plenty of interesting features to offer. If you treat this system as an Alternative method of payment, you can activate a protective measure for example that will ensure that your funds return to you if the other party doesn’t confirm the transaction or doesn’t send the product/doesn’t perform the service. Thanks to such features, bitcoins can be automatically deleted, return to the account or remain “frozen”, like when the transaction conditions aren’t fulfilled by a specified deadline.
It is worth noting that the bitcoin price fluctuates all the time. The more people use it, the higher it is. That’s why the users of the network have a real impact on the cryptocurrency’s exchange rate. They are the main factor determining its monetary value both now and in the future. This regularity applies to all digital currencies based on a decentralized p2p system.
Investments on the cryptocurrency market – calculator
The growing number of digital currencies can be easily explained by their investment potential. Purchasing a large amount of bitcoins might be a profitable investment, which a lot of lucky individuals have learned for themselves. The frequent changes to the exchange rate on one hand constitute a risk, while on the other they may help grow your capital. And since these fluctuations mainly depend on supply and demand, the Key role in the development of cryptocurrencies is played by the media. The more often and wider cryptocurrencies are discussed, the bigger the chances that over time they will become widely used means of payment that stores and service facilities will have to reckon with.
However, it is not just the desire for easy money that drives people to buy bitcoins or other cryptocurrencies. This choice is also motivated by the security matters, the desire to remain anonymous. Cryptocurrency networks aren’t subject to control by third party institutions, they are entirely independent systems that operate differently from regular financial markets. The latter depend on various circumstances: armed conflicts, diplomatic crises, international political tensions, as well as other phenomenons not related directly to finances. Cryptocurrencies give a chance to become partially independent from this type of circumstances.
Dangers related to cryptocurrencies
Despite cryptocurrencies proving themselves to be an attractive payment method in many regards, free from the flaws of traditional money, they still have their downsides. We have already mentioned the issue of security of the transactions made. From a purely technological point of view cryptocurrencies are indeed safer. Taking the quick changes of prices into account, however, they pose a higher risk of losses. They are definitely less stable than the American dollar or any other traditional currency that is subject to oversight from the state and the central bank. The result of it is that, despite the unquestionable popularity of such networks as Bitcoin Cash, EOS, Binance Coin, Ethereum or Ripple, they are still used by a relatively small part of population. The situation would probably get improved if cryptocurrencies became widely used means of payment.
What does the future hold for cryptocurrencies?
Nobody knows that. Maybe, as some experts predict, the virtual money will entirely replace the traditional money circulation. It cannot be ruled out, however, that it may suffer the same fate as many other inventions that in the end turned out to be just a temporary curiosity. Either way, if you want to see how systems like Bitcoin, Ethereum or EOS work – a good cryptocurrency converter will surely come in handy. Another reliable source of information is exchanges (they operate every day). We encourage you to use such sources not only because investing requires a lot of responsibility and market orientation.
As we have mentioned above, a cryptocurrency converter that operates in real time allows to steer clear of unfavorable transactions and the Risk of serious losses, like when signing CFD contracts. By knowing the value of a particular cryptocurrency, you will be able to manage your finances in an informed way. It is the best to check the exchange rate on the same day you’re making a transaction – the price might change within a single day. Without a calculator, it is hard to imagine using a virtual currency in an efficient manner, converting BTC to EUR or the other way round. This free tool allows to obtain the crucial information in a time comparable to hitting a light switch.