All you need to know about the Crypto Currency

Crypto Currency

 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.