What is Cryptocurrency and Advantages of using it

0
423

Currency has become an important part of everyone’s lives. In fact, money is everything for most people. 

Currency is defined as a medium of exchange for products or services. The money can be different forms such as notes or coins, usually, these are issued by the government.

Have you ever heard about cryptocurrency? Of course many times right!!!

Cryptocurrency is also used to purchase goods or trade digitally. Private and public keys are used to send, store and access cryptocurrencies between users. Unlike currency, cryptocurrencies are decentralized. It means crypto coins are not handled by the government. Sounds amazing right!!! Therefore cryptocurrencies can be organized and handled by individuals. No third party interference is required to send and receive crypto.

Cryptocurrency is organized and handled by peer-to-peer connection called ‘Blockchain’. Each transaction is recorded in a public ledger of the ‘Blockchain’, it can be purchasing, selling or transferring. As a result, blockchain improves the integrity of cryptocurrency and eliminates the necessity of central

Importance of Cryptocurrency

  • Cryptocurrency is a secured kind of virtual currency that everyone is preferring these days.
  • Coins like bitcoin have high demand because they have rich policies. The best one is that you don’t require third-party resources to store, access and send bitcoins.

Everyone is talking about cryptocurrency across the globe. Did you know, how cryptocurrencies are created?

Cryptocurrencies are created through cryptographic algorithms. Every cryptocurrency is maintained, organized and confirmed in the mining process. There are various cryptocurrencies introduced in the market. Among them, Bitcoin, Litecoin and Ether are popular cryptocurrencies.

Best Bitcoin exchange websites in the market

Most people say “Bitcoin exchanges are secured”. That statement is wrong!!! Not every bitcoin can be exchanged in a secure way. Therefore you should be aware of hackers. Choose the Best Bitcoin exchange platform to ensure powerful security. The outstanding online exchange websites are Coinbase, eToro, Coinmama, BitMEX, Binance and more. Pick the best platform according to your need and requirement and purchase cryptocurrencies in a simple way. 

What are the advantages of using cryptocurrency?

Low transactions fees

Credit cards offer high transaction fees. Don’t you agree? Yes!!! Considering, bitcoins the transaction fees are cost-effective. Also, you don’t need to pay extra charges when you don’t exchange bitcoins.

Low transactional fee can be beneficial for travellers. Also, a transaction in cryptocurrency happen within few minutes and eliminates waiting time.

Identity theft

You are vulnerable to fraud detection when you’re purchasing products online. 

But why?

In order to use your credit card while shopping, you require the credit card number, CCV, expiration date and full name. Are you sharing your sensitive data on every transaction? Think again, hackers are waiting at the corner to steal your credit card information.

Considering blockchain payments such as Bitcoins is the best way to ensure security. Information is shared by using public and private keys. That information can be encrypted or decrypted using cryptographic techniques only. These keys provide great security for your personal information. Your Gmail or Facebook password can be stored at a merchant, but by implementing the right methods, your private keys are stored securely only with you.

Decentralization

Blockchain technology in cryptocurrency is neither an organization nor an application. This technology manages information in the database and stores the bitcoin transactions information securely. Bitcoin can be organized and managed by its global network. No central authority involvement is required. Therefore, cryptocurrencies are decentralized. The network operated on a peer-to-peer architecture.

Decentralization is not a new concept. Keeping it simple, consider insurance programs are conducted by insurance companies. Sharing and storing the cryptocurrencies doesn’t require a central authority. No need to worry about system failure in decentralization network.

Instant settlement

Purchasing a real property can be a daunting task. Many people get involved such as lawyer, notary, government officers, etc. It can take several days or months to complete the process. Taking cryptocurrency into consideration, bitcoin contacts doesn’t require third-party authority or approvals.

Immediate settlement is the game-changer for cryptocurrency payments. Everyone is showing more interest and value towards cryptocurrency due to blockchain technology. Trading and exchange of currencies can be done in no time. Ease of usage and immediate settlement is the biggest advantage of cryptocurrency. There is no third party network involved, all you require is a strong internet connection. Within a few simple clicks, you can make payments and transfers.

Access to everyone

According to a recent analysis, there are more than 3.9 billion people use the internet every day. Few people use the internet to stay connected with their dear ones, few people use for business purpose and few people use the internet as a medium of exchange. It’s is impossible to exchange digital information without third-party resources. But, the happy news is, everyone can access to cryptocurrency.

Kenya has introduced the M-PESA system for transferring via mobile. Kenyans are now using bitcoin wallet and enjoying microfinancing services.

In a nutshell

Cryptocurrency is one of the trending topics from the past few years. A cryptocurrency can be a virtual or digital currency. It is a digital or virtual asset that works on a peer-to-peer mechanism. No third-party authority is required to handle digital assets. Cryptocurrency uses powerful cryptography techniques to ensure safe and secure transactions. There are several advantages to having cryptocurrencies. Because cryptocurrencies bring outstanding benefits in future. If you’re not having cryptocurrencies, gets them right now.