The modern concept of cryptocurrency is becoming very popular among traders. As a side product, Satoshi Nakamoto has introduced a revolutionary concept to the world. Decoding cryptocurrency We understand that crypto is something hidden and currency is a medium of exchange. It is a form of coin used in blockchain that is created and stored. This is done through encryption techniques to control the creation and verification of the traded currency. Bitcoin was the first cryptocurrency to come into existence.
Cryptocurrency is just one part of the process of running a virtual database in the virtual world. The identity of the real person cannot be determined here. Also, there is no centralized authority that conducts cryptocurrency business. This coin is thought to be the equivalent of hard gold stored by humans and whose value continues to skyrocket. The electronic system set up by Satoshi is a decentralized one where only miners have the right to change by confirming the proposed transaction. They are the only human touch provider in the system.
Cryptocurrency fraud is not possible because the whole system is based on hard core math and cryptographic puzzles. Those who are able to solve this puzzle can change the database which is impossible. Once a transaction is confirmed, it becomes part of a database or blockchain that cannot be returned.
Cryptocurrency is nothing more than digital money that is created with the help of coding techniques. It is based on a peer-to-peer control system. Let us now understand how to make a profit by trading in this market.
Cannot be reversed or duplicated: While many people may refute the notion that transactions are irreversible, the best thing about cryptocurrency is that once the transaction is confirmed. A new block is added to the blockchain and then the transaction cannot be forged. You become the owner of that block.
Online transactions: It not only makes it convenient for anyone sitting in any part of the world to transact, but it also simplifies the speed of transaction processing. Compared to real time where you need a third party to come to the picture to buy a house or gold or take a loan, in the case of cryptocurrency you only need a computer and a potential buyer or seller. The idea is simple, fast and full of potential for ROI.
The fee per transaction is less: Miners do not charge low or no fees during the transaction as it is taken care of by the network.
Accessibility: The idea is so real that anyone with access to smartphones and laptops can access the cryptocurrency market and trade anywhere at any time. This accessibility makes it even more profitable. While the ROI is commendable, many countries, such as Kenya, have introduced M-Pesa systems that allow bitcoin devices that now allow 1 in 3 Kenyans to carry a bitcoin wallet with them.