Cryptocurrency is considered as the future of all currency. In fact, several economists conclude that only 8% of the total cash in the world is present as physical money. The rest is present as liquid cash in the electronic bank accounts around the world or computer hard drives. With this in mind, cryptocurrency is widely regarded as the future of currency.
Cryptocurrency at the end of the day can be simply defined as values in a database that nobody can access unless a few particular conditions are met and fulfilled. In other terms, currency present on the electronic database can only be accessed by people who have the right keys to unlock it. It’s similar to the money present in the bank account in the sense that money can be accessed by an individual when he or she passes a few checks or in other words, meets a few conditions. The same way money is drawn from a bank account, cryptocurrency allows for the virtual coins to be exchanged to any currency. This just goes to prove that any currency anywhere in the world is nothing but a few entries in the database that can be accessed by the right individual.
Cryptocurrency is based out on the concept of cryptography which is a model that ensures safety and transparency in a way that no other model can. It is well established and widely regarded as a secure way of managing transactions and other commodities. The name of cryptocurrency is derived from the technique of securing communication, that is, cryptography.
– The simple nature of online trading means that anybody is welcome to trade in cryptocurrency
– The cryptocurrency market is decentralized in nature which means that there is not a central governing body
– The blockchain method deployed in the management of the liquid currency itself is tidy and efficient where the ownership of the currency as selling and buying happens is clearly laid out
– Blockchain technologies possess complex security features which makes it impossible for any third party interference
– The use of cryptography to secure the virtual cash means that any effort made towards disrupting the flow of the existing data, can be easily spotted
– There are no vulnerabilities present when it comes to the exchanging process
– To further enhance the security measures, the block chain is kept in multiple places rather than just one
– The transaction before it is initiated is checked more than once so as to check if the transaction matches the available funds and then further checking is done to see if the sender has indeed authorized the transaction using the key that was privately provided
Marcus from the city of Texas is a student who researched and learnt the pros of online trading in cryptocurrency and then applied that knowledge to make real profits.
Marcus along with his friend Axel has invested a sum of $1500 to purchase two bitcoins and stored them in his virtual wallet. While attending his school everyday, Marcus kept an eye on the trends in the market. And thanks to the flexibility of cashing out whenever deemed profitable by the seller, Marcus and Axel were able to sell their two bitcoins for an increased rate of $950 each for a bitcoin which brought them a profit of $400 on the two bitcoins.