Table of Contents Hide
In today’s modern world, cryptocurrency happens to be one of the hottest topics. Even though cryptocurrency is becoming more common by the day, many people still don’t know what crypto is or how it works. If you are also one of those people, fret not, we’re here to bring you answers.
In this article, we’ll be shedding light on the following:
- What Is Cryptocurrency?
- How Does It Work?
- The Process of Sending and Receiving Crypto
- How to Send Cryptocurrency?
- How to Receive Cryptocurrency?
What Is Cryptocurrency?
Putting it simply, cryptocurrency is a form of digital currency that can be used to purchase services and goods. Many individuals out there also view cryptocurrency as investments and trade in them. However, since this currency has a highly volatile nature, it is not recommended for the faint of heart.
While traditional currencies like the Dollar or Pound are issued and regulated by governments and banks, that’s not the case with cryptocurrency. Where cryptocurrency is concerned, neither does any trusted third party oversee the transfer of funds, nor does a central organization manage the currency.
How Does It Work?
A lot of cryptocurrencies tend to rely on blockchain technology. This technology allows a decentralized network to review and then approve any transactions made. You can think of blockchain technology as a digital ledger. Everybody in the network would have a copy of this ledger, so if any individual in the community tries to change it, others will reject that version.
Even though there are certain complications, cryptocurrency can be used to buy a lot of stuff. Many online retailers such as Coingate allow you to purchase gift cards of quite a number of famous brands and shops using cryptocurrency. So, if the brand you want to buy from does not accept cryptocurrency as an active payment method, it will undoubtedly accept its own gift card that can be purchased using cryptocurrency.
The Process of Sending and Receiving Crypto
Sending and receiving cryptocurrency is quite different than typical fund transfers via a credit or debit card. Let’s say you’ve purchased cryptocurrency somehow and wish to transfer it, what do you do?
That’s what we’re here to tell you. So, let’s get to it.
How to Send Cryptocurrency?
The process of sending cryptocurrency may vary slightly according to the wallet you’re using. However, the basic procedure remains the same.
- To start off, you will need to have a wallet containing any cryptocurrency. This can either be a desktop wallet, a mobile wallet, or an exchange wallet. When you open your wallet, you will be presented with two choices – Send or Receive. You are required to select send.
- Now, if your wallet comprises multiple cryptocurrencies, you would be required to select the one you plan to send. However, it is to be noted that some wallets may present Step 2 first and Step 1 later.
- To send cryptocurrency, you must have either the public key or the public address of your recipient. This may be a long series of random numbers and letters or a simple QR code. If it’s the public address, copy and paste it into the recipient field of your wallet. However, if it’s a QR code, scan it to fill in the details automatically
- Now that you’ve selected the currency you want to send and have entered the recipient details, it is time to type the amount you wish to send. Usually, you will have the option to denominate the value in either fiat amount or crypto amount, so keep this distinction in mind. You also need to remember that sometimes the scanned QR code will already have the requested amount. You won’t be required to manually input an amount to send in such a case.
- It is time to double or triple-check all the details you’ve entered. This includes checking the recipient’s address – especially if it was manually entered and the amount.
- After checking everything and ensuring all details are correct, click or swipe the Send button.
How to Receive Cryptocurrency?
Receiving cryptocurrency is a relatively simple process as compared to sending cryptocurrency. To receive crypto in your wallet, you must:
- Open your wallet and click or tap on the Receive button.
- Copy your public key or public address and send it to the person you wish to receive the amount from. You can also opt for an alternate method of sending your wallet’s QR code so the other person can scan it and acquire your details.
- Request the sender to share the Transaction ID with you so that you can look it up using a block explorer.
Sending and receiving cryptocurrency is not as difficult as it is often viewed by many individuals. However, if you’re new to the process, it is recommended that you practice sending small amounts at the start as these transactions are non-refundable, and a simple mistake can cost you a lot.