What Is CryptoCurrency?
Crypto currency is full time digital currency that can be better understood as digital assets which can be exchanged worldwide with peer-to-peer network. It is created and stored electronically in blockchains.
Cryptocurrency is actually an entry on huge global ledger. It only exists in computer networks; any transaction done is telecasted to the entire network. It is recorded in permanent ledgers which mean it’s impossible to fool the system about any transaction. Cryptography is a term coined in Second World War for sending war signals and operational details. Same mechanism is followed while making any transaction of cryptocurrency, so the transaction is completely anonymous.
It’s wholly associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers which is completely confidential.
Cryptocurrencies use decentralized control. Hence, it is not like any legal tender working under centralised banking system. Cryptocurrencies stay safe because of Keys, which are basically chunks of information that can be used mathematical guarantee about transactions.
There are Two types of key, Private and Public. Private key approves the information transfer from buyer and seller. Whereas Public key comes into play to announce the transaction so that concern people can keep record of that in online ledgers. Every transaction file consists of the sender’s name, recipient’s public key and the total amount of coins transferred. Every transaction has to be signed with the private key of the sender.
Crypto currency is hot piece of cake in the market. Therefore, there are lot of merchants dealing in crypto currency both online and offline. Bitcon is the premier among all crypto currency available, although there are other digital currencies like Litecoin, Ripple, Ethereum, but Bitcon leads them all by fair margin. Bitcoin is widely accepted as payment in Shops and to make online transactions. Crypto currency is attracting lot of investors globally, in fact there are many stories of people becoming millionaires by investing in bitcoins. Ethereum comes second to bitcoin, second in the list. Ethereum is the fastest growing crypto currency today and hot choice for the investors. One can invest in crypto currency, as they have high returns. Although they have a high risk factor but as they say “Higher the risk, bigger the reward”.
Buying crypto currency like bitcoin is very easy after the introduction of several exchanges like Bitstamp, Bitfinex, Kraken and many others. With these exchanges buying and investing in Bitcoin is swift for all. Buying Bitcoin comes with few concerns starting with storing it. It can be stored in the wallet provided by the exchange, but it may not be safe. It’s always suggested to buy different hardware storage for it or they can be stored offline. Buying crypto currency is an involving game where you should keep check of the market value including various updates related to your investment.