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  • You can open an account and make your first trade in minutes.
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  • Huge selection of cryptocurrencies.
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Trading cryptocurrency involves a high risk and you can lose all your money. Be aware of current regulations and risks before you trade.

Cryptocurrency – What is it? – Great guide

In recent years, many Norwegians have thrown themselves into the trend and invested in crypto such as Bitcoin. If you are considering doing the same, it is important to familiarize yourself with digital currency and how it works. For what is cryptocurrency – easily explained?

Here we will explain to you all the basics you need to know about cryptocurrency and blockchain technology, in a simple way. Like traditional currency, it is entirely possible to speculate in and exchange cryptocurrency.

Cryptocurrency – a definition

English cryptocurrencyWhat is cryptocurrency, really? Cryptocurrency can be considered a digital or virtual currency. The currency differs from traditional currencies such as Norwegian kroner (NOK) or US dollars (USD) in that it is an independent central governing body – such as governments or banks.

Instead of the currency and its control being centralized at a government bank, the control is decentralized via a database. This database is often called a blockchain, and provides an overview of all the financial transactions.

The blockchain allows you to store the various transactions between different parties in a way that can be verified.

What are blockchains and cryptography?

A blockchain can be described as a distributed, open, digital and at the same time dynamic accounting book. In this account book you can track and register all the digital transfers that are made. The transactions are made visible.

The blockchain will store all data in its own blocks which can then be linked together using cryptography. The latter involves various techniques that allow one to hide data, and only one with authorization has access to see the content.

It is not possible to change data stored in blockchains. The reason for this is that you can not change one block without having to change all other information that has been stored on later occasions. Changes are thus very difficult to make in practice.

Blockchain technology is necessary when there is no centralized management of the currency. Through the blockchain, a peer-to-peer network will manage the chain distributed. There is no centralized administrator of the chain.

Cryptocurrency has many benefits

What is cryptocurrency good for? There are several good reasons to invest in cryptocurrency . We can mention, for example, that transactions with cryptocurrency are not traceable. This means that purchases and transfers made with cryptocurrency cannot be traced back to the user.

Another advantage is that you have full control over your financial resources. You can almost consider yourself “your own bank”. The money will not be affected by the country’s economy or politics, and will not be affected by e.g. krone exchange rate.

The use of cryptocurrency is also very secure, since you do not have to give out sensitive information such as bank details, birth number or the like when you shop. The blockchain technology itself is also very secure, and almost impossible to hack.

Compared to traditional means of payment, cryptocurrencies also generally have very low transaction costs and fees. You can quickly and easily transfer money across national borders. The solution is also transparent, and all users get a complete overview of the transfers.

  • Non-traceable transactions
  • Transparency and overview of all transfers
  • Will not be affected by national / international monetary policy economy
  • Certainly
  • Low cost
  • Easy with international transfers
  • Fast transactions

Are there any disadvantages to cryptocurrency?

  • Copy experts
  • TRADING
  • SPOT
  • Leverage
  • Low fees, secure and popular crypto exchange.
  • Offers social trading - follow the trades to your favorites.
  • You can open an account and make your first trade in minutes.
  • bitcoin
  • ethereum
  • ripple
  • litecoin
  • bitcoin cash
  • dash
  • stellar
  • neo
  • tron
  • zcash
  • binance coin
  • plus more
  • visa payment
  • mastercard payment
  • paypal payment
  • webmoney payment
  • china unionpay payment
  • klarna payment
  • neteller payment
  • skrill payment
  • bank wire transfer payment
  • plus more

Trading cryptocurrency involves a high risk and you can lose all your money. Be aware of current regulations and risks before you trade.

 

The fact that the transactions can not be traced back to the user can be considered an advantage in many situations. But in some cases, the anonymity is exploited by criminals, who often have cryptocurrency as their preferred currency.

Another disadvantage of cryptocurrency is that the currency can fluctuate a lot in value. If you have invested money in Bitcoin or another cryptocurrency, you may lose out on it. But of course it can also go the other way, and you can profit from the investment.

Investing money in cryptocurrency can therefore be risky. But for many, this is a risk they are willing to take. Remember that you can easily invest a small amount, so that the investment does not constitute a large financial risk.

  • Crime
  • Risk

Different types of cryptocurrencies

Before you start trading cryptocurrency, it is important to get acquainted with the different variants. The most well-known form of cryptocurrency is probably Bitcoin, but there are also a number of other good options.

Let’s take a closer look at the most popular forms of crypto!

Bitcoin

Bitcoin (BTC) was the first form of cryptocurrency, and came on the market in 2009. The currency was developed by someone called Satoshi Nakamoto, but the identity of the person or people behind it is still somewhat uncertain.

The reason Bitcoin was developed was a desire to create a digital means of payment without the involvement of government agencies. There was also a desire for the currency to separate without fees or annoying delays.

Bitcoin is not under the control or supervision of public authorities, and is not regulated by any central bank. Although Bitcoin is popular, many companies do not consider the currency an approved means of payment.

There are still many who buy Bitcoin, and then primarily as an investment. Trading Bitcoin is almost comparable to commodity investing (eg investing in gold). Although value is not directly affected by policy, demand and other factors can affect value.

Ethereum

Ethereum (ETH) is another form of currency in crypto, and is based on a digital platform where users can use their own applications that are decentralized. Like Bitcoin, Ethereum is decentralized and completely out of the control of governments and banks.

Vitalik Buterin launched Ethereum in 2015. He did this together with a number of others, and the cryptocurrency is today the world’s second most popular.

Litecoin

A third popular cryptocurrency is Litecoin (LTC). Litecoin is based on a peer-to-peer network, and was actually created by a former employee of Google. This was in 2011, just before Ethereum was launched.

Litecoin can almost be considered a spinoff of the slightly more well-known cryptocurrency Bitcoin. The solution is very popular today.

FAQ

Er kryptovaluta lovlig?

Ja, det er fullt lovlig å handle kryptovaluta. Det er også lovlig å bruke kryptovaluta som betalingsmiddel, der dette tilbys.

Hva bestemmer verdien på kryptovaluta?

Det er først og fremst etterspørsel som påvirker verdien av kryptovaluta. Ved stor etterspørsel vil gi økt verdi, mens liten etterspørsel gir lav verdi.

Hvor kan jeg kjøpe kryptovaluta?

Dersom du ønsker å kjøpe kryptovaluta kan du gjøre dette via en egen handelsplattform som eToro eller Nordnet, som begge er populære alternativer blant nordmenn.

  • Copy experts
  • TRADING
  • SPOT
  • Leverage
  • Low fees, secure and popular crypto exchange.
  • Offers social trading - follow the trades to your favorites.
  • You can open an account and make your first trade in minutes.
  • bitcoin
  • ethereum
  • ripple
  • litecoin
  • bitcoin cash
  • dash
  • stellar
  • neo
  • tron
  • zcash
  • binance coin
  • plus more
  • visa payment
  • mastercard payment
  • paypal payment
  • webmoney payment
  • china unionpay payment
  • klarna payment
  • neteller payment
  • skrill payment
  • bank wire transfer payment
  • plus more

Trading cryptocurrency involves a high risk and you can lose all your money. Be aware of current regulations and risks before you trade.