What is Cryptocurrency?

Welcome to our crypto exchange! We at Bitnomics believe that you should approach this economic activity with as much background knowledge as possible. Let’s start off with one of the most basic questions – what is crypto?

Cryptocurrency is basically a form of digital money that works thanks to blockchain technology, and it is mainly seen as an alternative to the traditional fiat monetary system, controlled by central banks and governments. Bitcoin and Ethereum are among the most popular tokens in the world today, even though there are plenty of other cryptocurrency projects operating.

At its core, a cryptocurrency aims to be a medium of exchange. It is encrypted, decentralized, and digital. People can use crypto to buy regular goods or services, send money abroad, or just buy and sell, like you would do with foreign exchange.

We at Bitnomics offer cryptocurrency exchange services, which means you can either sell fiat currency in exchange for Bitcoin or Ethereum, or sell cryptocurrency in exchange for fiat. This is a quick and secure solution for everyone interested, and our exchange was founded by highly experienced and motivated people.

In order to operate properly, cryptocurrencies need the blockchain, which is an open-source and distributed ledger in charge of recording all financial transactions. Think of it as a checkbook that uses countless computers from around the world to keep the system running. Transactions are recorded in blocks that are then linked together on a chain of previous crypto transactions.

To buy cryptocurrency, users need access to an exchange platform such as Bitnomics, where it’s possible to buy or sell at attractive rates, benefiting from superior customer experience and close personal support. We work only with reputable liquidity providers so the user can exchange at the right price.

The smooth functioning of a blockchain depends on several critical factors. First, the blockchain uses a consensus mechanism, which is a set of rules by which transactions are verified, in order to prevent flaws such as double spending. At the time of writing, we would like to highlight that Bitcoin and Ethereum still rely on Proof-of-Work, meaning these systems need miners to verify transactions in exchange for a reward, released once a block is added to the ledger.

A second popular consensus mechanism is Proof-of-Stake and Ethereum is in the process of transitioning to it from Proof-of-Work – that is supposed to happen by the end of this year. Miners are replaced by stakers, who lock their cryptocurrency on the blockchain and have a chance to verify new blocks, depending on the size of their stake.

This entire series of operations makes it possible for cryptocurrency to be transferred from one holder to another and at the same time, unlocks new liquidity, since with each block, new tokens are released.

Bitnomics acts as an intermediary that gives clients the ability to buy and sell crypto. Our transactions are safeguarded by cutting-edge technology, alongside being constantly monitored, challenged, tested, and upgraded. We are founded in Estonia and licensed by the local regulator to facilitate exchange services for our customers.

 

 

Risk disclosure

You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Bitnomics does not guarantee any profit from any activity associated with its services.

  • You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. You confirm that you understand and agree that the risks associated with the Services are acceptable by you, taking into account your objectives and financial capabilities.
  • You acknowledge that purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate on any given day. Because of such fluctuations, Cryptocurrency may gain or lose value at any time. Cryptocurrency may be subject to large swings in value and may even become absolutely worthless. Cryptocurrency trading has special risks not generally shared with official currencies, goods or commodities in a market. Unlike most currencies, which are backed by governments or other legal entities, or commodities such as gold or silver, Cryptocurrency is a unique kind of currency, backed by technology and trust. There is no central bank that can take corrective measures to protect the value of Cryptocurrency in a crisis or issue more currency.
  • You should carefully consider if holding digital currency is suitable for you depending on your financial circumstances. Dealing and exchanging in cryptocurrencies involves significant risk. The value of virtual assets / currencies has high volatility (value can increase and decrease significantly in a very short period of time and at any given moment). Such price fluctuations bring uncertainty. The value of a virtual currency and collapse in demand may be influenced by many factors, including irrational (or rational) bubbles, loss of confidence in the currency, changes in software development, government decisions, creation of a competitive currency, technical problems, political or non-political statements, statements of influencers and news and hacker-attacks.
  • Your virtual assets may be lost by losing your password, private key or other security code. Virtual currencies have special risks that are not generally shared with the official currencies, because they are not issued by governments, or with commodities or goods that are tangible or registered in the official registry. Virtual currencies are intangible, decentralized, digital assets, backed by technology and trust. No central bank or other institution can take any measures to protect the value of virtual currency. Virtual currencies are autonomous and largely unregulated system of firms and individuals issuing currencies. The risk of loss in buying, selling or holding virtual assets / currencies can be substantial. You should therefore carefully consider whether exchanging virtual assets is suitable for you in light of your financial condition. Be careful to keep your private keys, passwords, security codes and words for yourself and change them on a regular basis. Bitnomics uses payment providers for transfers of fiat money for rendering exchange services and operating with the fiat money, whereas assisting banks do not, by any means, represent a medium of exchange, transfer, withdrawal, deposit or other transaction in connection to virtual currencies.
  • You acknowledge and agree that Bitnomics does not act as a financial advisor, does not provide investment advice services or guidance, and any communication between you and Bitnomics cannot be considered as an investment advice. Without prejudice to our foregoing obligations, in asking us to enter into any transaction, you represent that you have been solely responsible for making your own independent appraisal and investigations into the risks of the transaction. You represent that you have sufficient knowledge, market sophistication and experience to make your own evaluation of the merits and risks of any transaction and that you received professional advice thereon. We give you no warranty as to the suitability of the Services and assume no fiduciary duty in our relations with you. We may provide information on the price, range, volatility of digital currency and events that have affected the price of digital currency, but this is not considered investment advice and should not be construed as such. Any decision to purchase or sell digital currency is your exclusive decision at your own risk and Bitnomics will not be liable for any loss suffered.
  • To the full extent permitted by the applicable law, you hereby agree to indemnify Bitnomics and its partners against any action, liability, cost, claim, loss, damage, proceeding or expense suffered or incurred if direct or not directly arising from your use of our website, your use of the service or from your violation of our terms and conditions.
  • Bitnomics is not liable for any price fluctuations in Cryptocurrency. In the event of a market disruption, Bitnomics may, at its discretion and in addition to any other right and remedy, suspend the Services. Bitnomics will not be liable for any loss suffered by you resulting from such action. Following any such event, when Services resume, you acknowledge that prevailing market rates may differ significantly from the rates available prior to such event.
  • Internet transmission risks. Client acknowledges that there are risks associated with using the Software and Services including, but not limited to, the failure of hardware, software, and internet connections. Client acknowledges that the Company shall not be responsible for any communication failures, disruptions, errors, distortions or delays client may experience when using the Software and Services, howsoever caused.