All you need to know about the Crypto Currency
You
might have heard about the buzz that cryptocurrency has been creating over the
last couple of years. You might have come across the terms like Bitcoin, Altcoins,
ITC coins etc. They are nothing but are cryptocurrencies. The term cryptocurrency generally refers to a
digital medium of exchange to say electronic currency that utilizes complex
mathematical and scientific encryption and algorithms to generate and verify
transactions that involve money.
All
the transactions transaction that takes place will be added onto a public ledger
called the blockchain, a new technology which might also be introduced in
banking. Coins in crypto currency are generated through a process called to as
mining. So you have come to right place if you are searching about crypto
currency.
The word crypto currency is a peer to peer
digital currency that allows different people to trade anonymously from any
location. There is no intermediary and transactions take place between the two
parties only without the involvement of any third party or middlemen. Information regarding transaction is then
stored in a public ledger that cannot be changed by anyone.
For
a currency to qualify as a cryptocurrency, remember that it must have a public
ledger that records all the transactions and the actual currencies must be
obtained through solving complex mathematical problem in a process referred to
as mining.
Investing
in cryptocurrency could be a good investment, converting them into profits or
running yourself into losses depends on you. As the crypto currency is not much older and
the market being historically volatile, we can’t say yes or no answer
pertaining to the wisdom of investing in cryptocurrency. That is the reason why we have covered a
number of pros and cons here in this writing.
What are the advantages or pros of
crypto currency?
Your
money is safe and free from thefts with crypto currency
Crypto
currencies are fraud proof and legal, it is safer to deal with digital
currencies that to deal with real currency which can be seen with your eyes.
Since they operate based on blockchain technology, you don’t need to worry
about its safety and there can never be instances of identity theft and forget
passwords. If any persons send you
money, it is highly impossible for them to reverse a transaction as is the case
with some other forms of payments.
The operation of Cryptocurrency is
transparent:
There is an open ledger called a block chain
on which all transactions are recorded and monitored in bitcoin. Because of
this feature, once a transaction is completed and recorded on the server, it
cannot be changed by any person. Transactions are available for verification by
anyone and anytime, you can use your account to do so. No one person or
organization can manipulate it and there comes the biggest security feature of
crypto currency into picture
Inflation will not affect crypto currency
All
traditional currency experiences inflation because of economies shifts prices
and governments continue to print more money when they are in need. Bitcoin and
other cryptocurrency do not experience this as much because there is a finite
number of minable Bitcoins in the market in digital form. It was programmed to
have only about twenty one million Bitcoins ever to be mined and used. Population
growth is projected to stop in the upcoming years. So the last Bitcoins will be mined around this
period and no more will be introduced into the market after 2050.
Portability
Crypto
currency is not like paper currency, large amounts of cryptocurrency can be
transported easily without anybody notice. It is possible to carry billions of
dollars in Bitcoins in a memory drive on your person but it is t not advisable
to do like that.
Crypto money will be in your control
As
the users of digital currency are in control of their transactions over the web,
this helps in keeping their investment safe for ever. Transactions are made
independent of the identities of the parties making them which helps to protect
themselves from thefts.
It is impossible to trace transactions
when you use crypto currency
It not a pro as well as con but the good thing
about not being traceable is that there is no fear of any organization
monitoring your source of funds. Yow will have the freedom to buy and sell
without the source of your funds being traced is a benefit in many parts of the
world.
Cons of Crypto currency
Although
cryptocurrency has so many benefits, it comes with a number of disadvantages as
well. So you need to be very careful, one must definitely go through these pros
and cons before investing in crypto currency. Though disadvantages don’t look threatening,
you still need to be addressed them in
order to make a better understanding of what is there in cryptocurrency So here
are a few cons to cryptocurrency.
Lack of Knowledge proper knowledge on
the crypto currency market
Since
cryptocurrency is totally driven by technology especially internet, many people
don’t have any idea of how it works and how to purchase the coins. Due to the
lack of knowledge in this domain, there is a great level of skepticism and
doubt in everyone’s mind about it. It becomes a risky business if you don’t
know the basics of what cryptocurrency is, so you need to study the concept and
its prospects before investing.
Lack of Security with crypto currency
Even though crypto currency is very safe, there
is no perfect way to protect your bitcoins from basic human errors and technical
faults. According to reports, most of the web-based businesses that offered to
exchange bitcoins into other regular currencies have gone bankrupt. As cryptocurrencies aren’t regulated by any
financial association, no one can assure safety for the money and there is nothing you can
do if you lose your money.
Lack of Applications in crypto
currency
While
it’s really surprising to see crypto currency’s use for illegal transactions, at
the same time it is also very important for us to know how useful
cryptocurrency really in this technically advanced world. It may be troubling
for the traditional currencies and online payment systems for a while but
cryptocurrency will need applications for creating complex electronic contacts.
Types
of crypto currency
·
Bitcoin (BTC)
·
Litcoin (LTC)
·
Ethereum (ETH)
·
Zcash Dash
·
Ripple (XRP)
·
Monero (XMR)
·
Altcoins.
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