Simply put, cryptocurrency is digital money, which has been designed in a safe and anonymous way in some cases. It is closely related to the Internet that uses encryption, and it is basically a process in which readable information is converted into impenetrable code so as to process all the transfers and purchases made.
The history of encryption dates back to World War II, when there was a need to communicate in the most secure way. Since that time, it has evolved itself and is digital today as various elements of computer science and mathematical theory are used for the purposes of securing communications, money and information online.
The first cryptocurrency
The first cryptocurrency was introduced in 2009 and is still known worldwide. Several cryptocurrencies have been introduced since then over the past few years, and today you can find many of them available online.
How do they work?
This type of digital currency takes advantage of decentralized technology to allow various users to make secure payments and also to store funds without necessarily having to use a name or even go through a financial institution. It runs primarily on the blockchain. The blockchain is the general ledger that is generally distributed.
Cryptocurrency units are usually created using a process referred to as mining. This usually involves using the power of a computer. Doing so this way solves math problems that can be very complex in generating coins. Users are only allowed to buy coins from brokers and then store them in crypto wallets where they can spend it very easily.
Cryptocurrencies and the application of blockchain technology are still in their infancy when thinking about it in financial terms. More uses may appear in the future as there is no determination of what will be invented. The future of dealing in stocks, bonds, and other types of financial assets can be traded very well using cryptocurrency and blockchain technology in the future.
Why use cryptocurrency?
One of the main features of these coins is the fact that they are safe and that they provide a level of anonymity that you may not get anywhere else. There is no way that a transaction can be undone or forged. This is by far the biggest reason why you should consider using them.
The fees charged for this type of currency are also very low which makes it a very reliable option when compared to a traditional currency. Since they are decentralized in nature, they can be accessed by anyone other than banks as accounts are only opened by permission.
cryptocurrency live prices
Cryptocurrency markets offer a whole new monetary paradigm and sometimes the rewards can be great. You might make a very small investment only to find that it has spread to something great in a very short period of time. However, it is still important to note that the market can be volatile as well, and there are risks associated with buying.