The modern concept of cryptocurrency is becoming very popular among traders. The revolutionary concept introduced to the world by Satoshi Nakamoto as a side product became a hit. Decoding Cryptocurrency we understand that crypto is something hidden, and currency is a means of exchange. It is a form of currency used in a blockchain that is created and stored. This is done through encryption techniques to control the creation and verification of the currency transaction. Bit coin was the first cryptocurrency to be created.
Cryptocurrency is just part of the virtual database process that works in the virtual world. The identity of the real person here cannot be determined. Also, there is no centralized body that governs cryptocurrency trading. This currency is equivalent to the hard gold that people keep and whose value should rise rapidly. The electronic system set up by Satoshi is decentralized in which only miners have the right to make changes by confirming the initiated transactions. They are the only providers of human touches in the system.
Counterfeiting cryptocurrency is not possible because the entire system is based on hard math and cryptographic puzzles. Only those people who are capable of solving these puzzles can make changes to the database which is almost impossible. Once a transaction is confirmed, it becomes a part of the database or blockchain that cannot then be undone.
Cryptocurrency is nothing but digital money created with the help of coding techniques. It is based on a peer-to-peer control system. Let us now understand how one can benefit from trading in this market.
It cannot be reversed or forged: Although many people may refute this that transactions done are irreversible but the best thing about cryptocurrencies is that once the transaction is confirmed. The new block is added to the block chain 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 transact, but also facilitates the speed at 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 full of ROI prospects.
The fee is low per transaction: Miners take little or no fee 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 anywhere. This affordability makes it even more lucrative. As the ROI is commendable, many countries like Kenya have introduced the M-Pesa system which enables a bit coin device which now allows one in three Kenyans to have a bit coin wallet.