Cryptocurrency is the new age digital currency. It does not have a physical shape to it and there is no need of linking a bank account. The virtual cash can be exchanged between two participating parties through a safe and secure channel that enables for financial transactions with the help of the well known safety platform of cryptography.
Bitcoin and Ethereum are two of the well known forms of cryptocurrency but there are plenty of other forms. Some of them include Litecoin abbreviated to LTC, Ripple abbreviated to XRP, Z cash abbreviated to ZEC and XLM short for Stellar Lumen. Satoshi Nakamoto of Japan invented the concept of cryptocurrency and was also the first to deploy the block chain technology, inventing bitcoin as well as the first to conduct the digital cash and its exchange in a decentralized manner with no governing body.
It is quite normal to have reservations against something that is new and especially when it is money and you can not see it in its physical shape. In fact, bitcoins were not everybody’s cup of tea initially but the platform rapidly gained momentum thanks to the cryptographic functions and the block chain technology that is deployed as the foundations of this virtual cash. Bitcoins are now widely accepted by businesses and merchants all over the world. There no more exists the reservations of it being illegal tender.
One thing to note of huge importance when referring to cryptocurrency is the process of mining. There are thousands of transactions and currency flow happening from one wallet to the other every minute of the day. This heavy operation requires the transactions that were made to be acknowledged and verified so that they get the vote of approval. This is where mining comes into play. Mining in simple terms is the procedure of verifying the transactions and also verifying the parties, that is, if the seller has in fact used their public keys or private keys to initiate the transaction.
Mining is done through the processing power of a computer. Bitcoins are in fact the digital currency but the way they are generated is by mining like mining gold. That is where the name comes from.
Despite being relatively new in nature, cryptocurrencies provide lots of benefits. Here are some of them.
- Transactions are made easily without any paperwork or brokerage fees
- Not just easily, transactions on Cryptocurrencies are incredibly secure and reliable
- It is easily accessible. All you would need is a stable internet
- International trade is made easier than ever
- The ownership solely is yours without any middlemen
Cryptocurrency leads you to instant profits and that’s what everybody wants. All one has to do is monitor the trends in the market and cash in at the right time. That is what Gareth had done when he invested $2500 to purchase 5 bitcoins and when at a certain point,their demand was high and the price had risen, Gareth cashed in to gain a profit of $1300 for his 5 bitcoins.