Cryptocurrency is a digital currency that was developed to serve to exchange products and services through the modern system of electronic transactions without needing to go through any intermediary. Virtual currencies aim to upset the mainstream currencies and commodity market. As name suggests, they are intangible which means you cannot touch any of its forms, but you can use it as a way to pay in the same way as with other currencies.
As confirmed by crypto investor Guy Galboiz, Bitcoin is the first cryptocurrency or virtual currency that people started to trade in 2009. While many other virtual currencies such as Ripple, Ethereum, Litecoin have emerged since then, bitcoin continues to sustain its popularity. Even though these currencies have a long way to go, the success of bitcoins has established that the concept can attract a genuine interest.
Cryptocurrencies have various advantages over mainstream currency. They include:
Cryptocurrencies are not centralized or controlled by any government, bank or financial institution.
Transactions with digital currencies can be made anonymously which means you can preserve your privacy when making cryptocurrency transactions.
They are global, allowing anyone to trade or invest in them.
Its transactions require no intermediaries since they are carried out from user to user.
With quick transaction process, you can send money to any country within few minutes.
Almost all digital currencies can be exchanged for any currency in the world.
No one can fake any cryptocurrency because they are encrypted with a refined crypto-graphic system.
Cryptocurrencies are safe and can be kept in your personal electronic wallet with confidential codes that only you know.
Unlike traditional currencies, the value of virtual currencies is mainly subject to the old market rules of supply and demand.
The storage of crypto coins is a very important factor. One of the available options is storing it on the exchange where you purchase it. Due to increasing popularity of cryptocurrency, there are many new yet unknown exchange mediums popped up almost everywhere. Therefore, this option needs you to be careful when choosing the medium for the exchange. And it is better to take your time to properly study your exchange options in order to avoid scammers. Aside from the above, you can also store crypto coins in your hardware wallets. There are several legitimate companies like Ledger that allow you to safely store virtual currency including bitcoins.
Cryptocurrencies can be indirectly controlled by their transactions through Point to Point (P2P) exchanges. The P2P structure and the lack of control do not make it possible for any authority to influence its value or cause inflation by generating more quantity. The production and value of digital currencies is based on the rule of supply and demand. It is usually calculated with an algorithm that measures the amount of transaction with digital currency in real time.
Since the establishment of first digital currency, the market of cryptocurrencies has seen lots of variations. These fluctuations and instable nature of the market make the currency more suited for a long-term scene. Many established news sites report on cryptocurrencies, including Business Insider, Crypotocoin News, Coindesk, and Telegraph. In addition to these websites, many Twitter accounts such as @ BitcoinRTs regularly tweet about different virtual currencies.