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 cryptocurrency we understand that crypto is something hidden and currency is a medium of exchange. This is a form of currency used in the blockchain created and stored. This is done through encryption techniques to control the creation and verification of the transaction currency. Bit coin was the first cryptocurrency to appear.
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 expected to increase by leaps and bounds. The electronic system set up by Satoshi is decentralized, in which 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 because the whole system is based on hard math and cryptographic puzzles. Only those people who are able to solve these puzzles can make changes to the database, which is almost impossible. Once the transaction is confirmed, it becomes part of the database or blockchain, which cannot be reversed then.
Cryptocurrency is nothing but digital money, which is created using encryption techniques. It is based on a peer-to-peer control system. Let us now understand how trade in this market can benefit.
It cannot be inverted or tampered with: Although many people may deny that the transactions made 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 tampered with. You become the owner of this block.
Online transactions: This not only makes it suitable for transactions of anyone sitting in any part of the world, but also facilitates the speed with which the transaction is processed. Compared to the real time 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 potential buyer or seller in the case of cryptocurrency. This concept is easy, fast and full of return on investment prospects.
The fee is low per transaction: There is a low or no fee charged by the miners during the transactions, as this is taken care of by the network.
Accessibility: The concept is so practical that all people who have access to smartphones and laptops can access the cryptocurrency market and trade it anytime, anywhere. This affordability makes it even more lucrative. As the return on investment is commendable, many countries such as Kenya have introduced the M-Pesa system, which allows a coin-operated device that now allows one in three Kenyans to have a wallet with household coins.