WHAT IS CRYPTOCURRENCY

WHAT IS CRYPTOCURRENCY?

As the world modernizes, everything has turned to the internet and created an electronic version of itself. Currency is no exception in this regard and after banks introduced online banking applications currency itself evolved into a separate entity. Cryptocurrency is the digital and virtual manifestation of currency and is completely different from tangible currency. In order to have any sort of transactions, this e-currency, as it is sometimes called, uses cryptographic technology and software for that to happen. All the cryptocurrencies in the world don’t have a centralized issuing system and use a decentralized version to keep a record of all units moved around from different ownerships. 

The entire system does depend on a mother server as it is a peer to peer model based system. This means that each device, for example a computer, acts as a server for others they are being linked to. When the specified transactions are made, the entries are recorded and kept safe in an online data base. The ledger in which they are recorded is a public domain and can be accessed by individuals that are participating in the specific transaction. The entirety of the process is secure and safe as it uses deep encryption codes to handle both privacy and security of transactions. That is where the word crypto is derived from; from the word encryption. The amounts that are exchanged are store in digital wallets that are in the form of applications that individuals use on their phones. All crypto currencies in the world at this time use blockchain data base to store all of its public ledgers. Although a currency, these are denoted as coins and the coins themselves have a variable value.

The way crypto is generated is by a process is known mining. This process is completely dependent on the processing power of the device you are using. The process demands for the device to perform complex mathematical calculations which are very strenuous even for computers. So if you think you can mine coins from your mobile phone, you would be making close to zero progress in accumulating coins. The ways of buying these coins and getting on the game also has a number of ways. Either you can buy from a traditional broker who is always available to offer to buy and sell coins as you desire.  These can be through cash or other financial assets such as bonds, EFTs and stocks. Just like normal, tangible currency, you can buy things in exchange for your crypto currency. Goods are dependent on the value of the type of coin you are using as you can buy anything from a cup of tea, clothes and even big value items such real estate! Unfortunately, with the benefits there are some cons to being an investor. Scams are real and sometimes an unavoidable danger. As this disease exists in the world of money and it is hard to overcome sometimes. So when the time come to complete or initiate any transaction, make sure to use verified brokers.