S4B Crypto Contest - Season 6
Hello everyone,
It's your favorite Steemian @rakiya from Nigeria and I'm delighted to join in this contest organized by @waqarahmadshah in this noble community today. It's a wonderful contest and I love to share my participation in it.
How is the price of a cryptocurrency determined in the market?
To determine the price of a cryptocurrency in the market, one needs to check the market and analyze it to see where the price is and if the price will be going down or upward.
The things or factors that determine the price of the assets include the demand for the asset i.e. the buying and selling demand of the asset. When more people buy and hold the assets in their wallets, you will notice the price going up because the demand for them is high.
In the same way, when people begin to sell the assets they are holding, you will notice that the price will become low because many are selling their assets.
Another factor that can influence the market price is news about the crypto space. If we have good news about the market, it will help push the price upward and if you have bad news about the market it will help push the price downward. Either way, these have influenced the price of the assets.
How can individuals purchase and store cryptocurrencies?
To purchase cryptocurrency is very easy all you need is to register with an exchange and in this exchange, you can buy cryptocurrency from them using your fiat through your card or you can use the P2P means to buy your assets.
To use the P2P format, you must register as a buyer on the crypto exchange and then when anyone wishes to sell and you meet the standard and the person selects you to trade with, he or she will open an order so once you select to trade with them, you will send the amount to their account.
Immediately they receive this amount, they will then go ahead to release the asset you have paid for so it is as simple as that. You can buy from the exchange directly or using the P2P means.
How secure are cryptocurrency transactions compared to traditional banking?
Cryptocurrency transactions are fast and secure because when trading with anyone, the exchange serves as an intermediate so that any issues will be resolved within 24 hours. So performing any transaction while following all the rules means you will see your money without delay.
In the traditional bank, when you have issues with your transaction, it may take days or even weeks before it will be rectified and if you don't consistently follow it up it can be forgotten thereby making you lose your money.
So since the transaction of crypto is transparent and happens in seconds, you can see everything but in the traditional bank, you don't have the opportunity to see anything.
Can cryptocurrency be used for illegal activities like money laundering?
Yes, cryptocurrency can be used for many illegal activities and that is the main reason why most country governments are still fighting cryptocurrency at this moment. Since the wallet cannot be traced, people who do money laundering always want their payment through the crypto wallet.
Regularizing cryptocurrency is the only way that most government tends to fight illegal activities within the jurisdiction of using cryptocurrency for illegal activities. So cryptocurrency as it is used for good things is also used for bad things as our traditional banks can be traced but the crypto wallet is untraceable.
I want to finally invite @ruthjoe, @lhorgic, and @m-fdo to join the contest.
Thank you, friend!
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https://x.com/rakiyasamson/status/1786649770183827861
It is amazing how even in something as complex as the crypto world there are people doing illegal activities such as money laundering and scams, the good thing is that it is not very often because there are some ways to track this and the advances of the blockchain makes it more secure.