Cryptocurrency, often referred to as crypto, has taken the financial market by storm and has created a better way to make transactions all over the world.
Come with us as we explore cryptocurrency the same way we’d explore online casino slots.
What is cryptocurrency?
Cryptocurrency, which is called crypto for short, is a form of digital money or currency. It works the same way that money would work meaning that it can be used as a medium of exchange. The difference between crypto and real money is that crypto is decentralized.
Decentralization refers to who holds the power of the actual currency. Decentralization in crypto means that the government and banks do not have direct control over it. Apart from decentralization, all the exchanges made using cryptocurrency are made through a computer network.
How is crypto secured?
Cryptocurrency is secured through cryptography making using crypto safe and secure. Cryptography makes crypto impossible to double-spend and almost impossible to counterfeit.
Cryptography which is also referred to as cryptology is the practice and study of certain techniques. These techniques ensure that there is secure behavior, especially in the presence of adversarial behavior.
Advantages of cryptocurrency
Many advantages come with using cryptocurrency. In this section, we explore the different advantages of using cryptocurrency.
Cryptocurrency defines making payments easily while maintaining low transaction costs. You can make payments using a smartphone app and an exchange or hard wallet. You are also able to receive different cryptocurrencies from anywhere in the world.
This is great for businesses as they can receive funds without having to worry about exchange rates which may be experienced with normal money.
It is also possible to purchase crypto using what is called a Bitcoin ATM. You can purchase these with real money however it is not all crypto that can be purchased this way.
A very big benefit of using crypto is that your funds are safe. This is because of cryptography and the use of blockchain security.
By using blockchain security they can prevent things such as fraud and cyber attacks. It is also a complete risk management system that consists of four main parts which include blockchain networks, assurance services, best practices, and cybersecurity frameworks.
A large part of the security of cryptocurrency is the hash rate. The hash rate refers to the total amount of computing power being used by a proof-of-work structure to help approve transactions.
Proof-of-work refers to one person or party proving to another that they have used a certain amount of computer effort has been expended. They are then able to approve the transaction with minimal effort.
Short transaction times
The disadvantage with using actual banks is there are waiting periods when wanting to make payments or receive money. These waiting times can take between three to five business days. When using cryptocurrency transactions reflect almost immediately and can be moved from one part of the world to the other in seconds or minutes.
Since we can invest in cryptocurrency it makes it one of the fastest-growing markets. There is also an increased demand for cryptocurrency due to its major returns.
Since the days of crypto being released, it went from being of no value to be the most sought-after digital currency.
Different cryptocurrencies have different values however certain cryptocurrencies are highly sought after such as Bitcoin, Ethereum, and others.
Although cryptocurrency is safe and secure it is not as private as many people think. A lot of people tend to think that there is no trace of transactions especially when it comes to the paper trail.
The truth is that because of the use of the blockchain method there is a public ledger that is available to the public. This ledger records all transactions made forever.
This public ledger will only show wallet addresses however if one can link a user’s identity to that of a wallet a link can be established. However, it is still possible to make an anonymous transaction.