Cryptocurrency is a digital currency that uses blockchain technology to process and secure transactions on a virtual ledger. Similar to other currencies, cryptocurrency is stored in wallets and can be used to send and receive funds.
While cryptocurrency has many use cases, we will focus on the parts you need to be familiar with to make purchases and redemptions on MyPrize US.
Tokens: There are thousands of different cryptocurrency tokens, such as Bitcoin (BTC) and Ethereum (ETH). Currently, you can make purchases on MyPrize US using these tokens. A crypto token is akin to a traditional currency, like United States Dollars (USD).
Networks: Networks are used to process crypto transactions. There are many networks, but each network only supports a limited set of tokens. The networks available for each transaction will depend on the token you're using at the time.
Network Traffic: Since many people are using the same networks, there can be an increase in traffic at any given time. When this happens, transaction requests get queued, so each transaction may take longer than normal to process as it reaches the front of the queue.
Gas Fees: There is a processing fee for each transaction—known as a gas fee. Gas fees fluctuate based on network traffic, and fees are higher when there is more traffic. Gas fees are paid to the network, not to MyPrize US.
Wallets: Crypto wallets allow you to transact with tokens. There are many wallet options, and choosing a wallet is a matter of personal preference. With your wallet, you can convert traditional currency into tokens, store your tokens, use tokens to make purchases, and convert tokens into traditional currency. You can store different tokens in the same wallet, but not all wallets support all tokens.
Wallet Addresses: Every wallet has a unique address for each type of token it holds. You don't just have one address per wallet. So, if your wallet holds 3 different types of tokens, you’ll have at least 3 wallet addresses - one per token. Your wallet addresses are unique to you. Addresses are used to send funds from one place to another. When transferring funds, it's extremely important to make sure you're pasting the correct wallet address for the type of token you're transferring.
To learn more about cryptocurrency and key terms, check out these resources: