The world is moving towards a digital age. The transactions that we do have now taken a digital pathway worldwide giving people an alternate option. In this technological rich age, there is a new buzzword in the form of ‘Cryptocurrencies’. We can find several articles and news segments on the internet due to its great value hike in the recent years. Investors from all over the world have shown knack in because of the very reason. So we thought of presenting a very small introduction to the sensation of cryptocurrencies.
What is a cryptocurrency?
The best possible explanation is that a cryptocurrency is a virtual or digital currency. Its main design has been done just like any other currency that becomes a medium of exchange. There are a fixed number of available cryptocurrencies in the world. A cryptocurrency utilizes cryptography as a security and to measure the transactions. The cryptocurrencies are stored in blockchain system which makes it a decentralized platform. People acquire the cryptocurrencies through mining which is an extensive process. One of the most important cryptocurrencies available in the market is Bitcoin created by Satoshi Nakamoto, it was introduced in 2009. It is the highest valued cryptocurrency as well. Other popular cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin. Users generally store their cryptocurrencies in secure wallets; the popular form is either digital wallets or paper wallets.
What are the properties of cryptocurrencies?
- The transactions done through cryptocurrencies are irreversible in nature. Once a confirmation is done, no one can tamper with it.
- One can do the cryptocurrency transaction in an anonymous way. The address can be anything and many not detail a real-life user.
- The transactions are quite fast in cryptocurrencies and people aren’t restricted by a location. Everything happens through the help of internet.
- Cryptocurrency is very secure as it is stored in a cryptographic system. Every user has a unique private key which helps them to access their assets.
- There is no permission that one needs to grant to transfer or transact in cryptocurrency. It is upon the user to send their assets to anyone of their choice.
What can one do with the cryptocurrencies?
- One can buy good with cryptocurrencies just like their usual money. These days many offline and online vendors are actually accepting popular cryptocurrencies. There are some online markets that are solely made for cryptocurrency transactions.
- One of the most popular things among users is to perform investments with the cryptocurrencies. The main reason behind this is the boom in their values. People may invest in different initiatives of startups or even invest in Crypto index funds according to their preference.
- The other popular thing is to mine cryptocurrencies which is an important thing for keeping up with the cryptocurrency market. There are several extensive ways to invest ones time into mining different cryptocurrencies.
So, here is a brief introduction to cryptocurrencies. The countries and economic powers all over the world are busy thinking about the legality and state of cryptocurrencies. But we can definitely say that this infant form of currency has brought an economic revolution in the way that we see and use currency.