Electronic transactions and payments, the so-called digital currencies appeared, which, although it is not seen or touched by the eye, as well as suspicions that it is electronic - it has caused a boom in the digital economy around the world; Rather, it came to the tendency of many central banks around the world to link their national currency to stable digital currencies, and it also met with increasing acceptance and demand that increased the prices of digital currencies to record levels

What are digital currencies?

Electronic currencies, digital money, or electronic money, is a type of currency available in digital form only, which is designed to be exchanged between people in virtual transactions, allowing users to avoid steep charging fees from most banks and financial institutions to transfer money, the digital currency has advantages, the first of which is not It has a central authority (ie a controlling intermediary).

Cryptocurrencies are available in the form of data and not as physical objects. In fact, Bitcoin cannot be kept in your hands or in your safe, yet it has the same characteristics as other financial currencies, so instant transactions and transfer of ownership are unlimited; It can also be used to purchase various goods and services.

Disadvantages of digital currencies:

As it has advantages, dealing with digital currencies has disadvantages such as:

1. It is easy to use in illegal transactions

Security and absolute privacy, which were the most important features, make it difficult for governments to track any user through his wallet address or know his data, which allows it to be used in illegal transactions and money laundering.

2. Loss of data can mean huge financial losses

The encrypted digital currency can be completely erased due to a computer failure if there are no backup copies of the coin holdings.

The most popular types of digital currencies:

Many believe that cryptocurrency is only one type and that is Bitcoin; However, they are very many types, just  The Motley Fool There are approximately 12,000 currencies that are traded via the Internet in various countries around the world, and there are many companies that have started issuing their own digital currency.

Bitcoin:

The most famous and most widely traded digital currency in the world, it is dealt with outside the jurisdiction of a central authority. Created in 2009 by a mysterious person, the coin was originally introduced to be used in payments that are not subject to government oversight, as it provides money without a name, so the owners of this coin or any information about their identity can not be known.

With the widespread use of Bitcoin, many countries were forced to admit it.

BNB Binance Coin

It is a cryptocurrency used as an intermediary when exchanging money from one currency to another. It was founded in 2017, by a Chinese company called Beijie Technology in Hong Kong, which operates Binance, one of the world's most successful exchanges in the world's leading and well-known cryptocurrency.

 BNB is one of the most interesting and unique cryptocurrencies currently available. It was founded in 2017, by a Chinese company called Beijie Technology in Hong Kong and many leading crypto experts believe it has a positive future given the continued success of Binance, which is known as the most successful exchange in the world. 

How to buy cryptocurrency:

As mentioned by Kaspersky

Buying cryptocurrency safely includes four basic steps:

1. Decide where to buy it

There are many ways to buy cryptocurrency safely, although the most accessible method for beginners is probably a centralized exchange.

If you are more familiar with traditional brokerage accounts, there are a few online brokers that provide access to crypto currencies as well as stocks. Among the online brokers reviewed by NerdWallet, these include Robinhood, Webull, SoFi Active Investing, and TradeStation.

If you are looking for an exchange that only operates within the cryptocurrency world, looks no further than pure cryptocurrency exchanges. These platforms like Coinbase, Gemini, and Kraken won't give you access to underlying assets like stocks and bonds, but they usually have a much better selection of cryptocurrencies and more crypto storage options on the platform.

2. Choose a payment method

Although there are thousands of cryptocurrencies being traded around the world, you will find that the most popular options are widely available for purchase with fiat currencies such as the US dollar. If you are a first-time buyer, it is very likely that you will have to use regular funds to purchase cryptocurrency.

If you are a more experienced investor, you may want to trade some of your existing crypto holdings for another type of cryptocurrency - for example Bitcoin for Ethereum.

3. Add value to your account

Depending on how you choose to pay, you may have to fund your account before purchasing any crypto. If you use fiat currency, most exchanges allow debiting and bank transfers. Some also allow you to fund a purchase with your credit card, although this can be a risky move.

If you already own a cryptocurrency, you can transfer it to your account from a digital wallet or another platform, and then use it for trading.

4. Select the cryptocurrency

There are many options for cryptocurrency investors, although there aren't any that are likely to be right for everyone. Before you buy, ask yourself what your goals are for this investment. Do you hope to increase its value? Are you interested in transacting with cryptocurrency? Interested in using core technology via decentralized applications? This may help you make your decision

In the short term, it seems that digital currencies are still maintaining an important position as the number of investors in digital currencies is constantly growing in various parts of the world. Cryptocurrencies are dominant at the moment, but investing in something new comes with challenges, so be prepared.