The modern concept of cryptocurrency is becoming very popular among traders. The revolutionary concept that Satoshi Nakamoto introduced to the world as a by-product became a hit. Decoding Cryptocurrency we understand that crypto is something hidden, and currency is a medium of exchange. It is a form of currency used in a chain of blocks that is created and stored. This is done through encryption techniques to control the creation and verification of a currency transaction. Bit coin was the first cryptocurrency to emerge.
Cryptocurrency is only part of the process of a virtual database that works in the virtual world. The identity of the real person cannot be established here. Also, there is no centralized body that manages cryptocurrency trading. This currency is equivalent to hard gold kept by people and whose value should grow sharply. The electronic system set up by Satoshi is decentralized in which only miners have the right to make changes by confirming initiated transactions. They are the only providers of human touch in the system.
Forgery of cryptocurrency is not possible because the whole system is based on hard mathematics and cryptographic puzzles. Only those people who are able to solve these puzzles can make changes to the database which is almost impossible. Once a confirmed transaction becomes part of a database or chain of blocks that cannot then be undone.
Cryptocurrency is nothing but digital money that is created with the help of coding techniques. It is based on a peer-to-peer control system. Let’s now understand how someone can benefit from trading in this market.
It cannot be reversed or forged: Although many people can refute this that the transactions made are non-refundable, but the best thing about cryptocurrencies is that once the transaction is confirmed. A new block is added to the blockchain and then the transaction cannot be forged. You become the owner of that block.
Online transactions: This not only makes it convenient for anyone sitting in any part of the world to perform transactions, but also facilitates the speed with which the transaction is processed. Compared to real time when you need third parties to show up to buy a house or gold or take out a loan, you only need a computer and a potential buyer or seller in the case of cryptocurrency. This concept is easy, fast and filled with prospects for a return on investment.
The fee is low per transaction: Miners take low or no compensation during transactions because the network takes care of it.
Accessibility: The concept is so practical that all those people who have access to smartphones and laptops can access the cryptocurrency market and trade it anytime and anywhere. This accessibility makes it even more lucrative. As ROI is commendable, many countries like Kenya have introduced an M-Pesa system that provides a device for essential coins that now allows every third Kenyan to have a wallet with bit coins.