The modern concept of cryptocurrency is becoming very popular among traders. A revolutionary concept introduced to the world by Satoshi Nakamoto as a spin-off 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 the block chain, created and stored. This is done through encryption techniques to control the creation and verification of the transacted currency. Bit coin was the first cryptocurrency to emerge.
Cryptocurrency is only part of the process of a virtual database operating in the virtual world. The identity of the real person here cannot be determined. Also, there is no centralized authority to govern cryptocurrency trading. This currency is equivalent to the solid gold held by the people and whose value is supposed to skyrocket. The electronic system set by Satoshi is decentralized where only miners are allowed to make changes by confirming the initiated transactions. They are the only human touch providers in the system.
Counterfeiting the cryptocurrency is not possible because the entire system is based on basic mathematical 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 part of the database or blockchain, which cannot then be reversed.
Cryptocurrency is nothing but digital money that is created using coding technique. It is based on a peer-to-peer management system. Let us now understand how one can benefit from trading in this market.
It cannot be reversed or tampered with: Although many people may argue that the transactions done are irreversible, but the best thing about cryptocurrencies is that once the transaction is confirmed. A new block is added to the block chain and then the transaction cannot be tampered with. You become the owner of this block.
Online transactions: This not only makes it suitable for anyone located in any part of the world to transact, but also facilitates the speed at which the transaction is processed. Compared to real time where you need third parties to step in to buy a house or gold or get a loan, you only need a computer and a prospective buyer or seller in the case of cryptocurrency. This concept is easy, fast and full of ROI prospects.
The fee is low per transaction: There is little or no fee charged to miners during transactions as this is borne by the network.
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 accessibility makes it even more profitable. As the return on investment is commendable, many countries such as Kenya have introduced the M-Pesa system enabling a home coin device, which now allows 1 in three Kenyans to carry a home coin wallet with them.