The modern concept of cryptocurrency is becoming very popular among traders. A revolutionary concept presented to the world by Satoshi Nakamoto as a by-product became a hit. Decoding. We understand that cryptocurrency is something hidden, and currency is a medium of exchange. This is a form of currency used in the created and stored blockchain. This is done through encryption techniques to control the creation and verification of the currency with which the transaction is performed. Bitcoin 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 cannot be determined here. In addition, there is no centralized body to manage cryptocurrency trading. This currency is equivalent to hard gold, preserved by humans and whose value is supposed to increase by leaps and bounds. The electronic system set up by Satoshi is decentralized, where only miners have the right to make changes by confirming initiated transactions. They are the only providers of human touch in the system.
Counterfeiting of cryptocurrency is not possible, as the whole system is based on solid mathematical and cryptographic puzzles. Only those people who are able to solve these puzzles can make changes to the database, which is almost impossible. Once confirmed, the transaction becomes part of the database or blockchain, which cannot be reversed afterwards.
Cryptocurrency is nothing but digital money, which is created using a coding technique. It is based on a system of equal control. Let us now understand how one can benefit from trading in this market.
It cannot be reversed or forged: Although many people may deny that transactions are irreversible, the best thing about cryptocurrencies is that once the transaction is confirmed. A new block is added to the blockchain and then the transaction cannot be falsified. You become the owner of this block.
Online transactions: This not only makes it suitable for transactions by anyone sitting in any part of the world, but also facilitates the speed with which the transaction is processed. Compared to real time, when you need third parties to enter the picture to buy a house or gold or take out 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 investment return prospects.
The fee is low per transaction: There is a low or no fee charged by miners during transactions, as this is taken care of 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 affordability makes it even more profitable. As the return on investment is commendable, many countries such as Kenya have introduced the M-Pesa system, which allows a bitcoin device that now allows one in three Kenyans to have a wallet of bitcoin coins.