Simply put, cryptocurrency is a digital currency, designed in such a way that it is secure and anonymous in some cases. It is closely associated with the internet using cryptography, which is the basic process by which readable information is converted into a code that cannot be cracked to tack on all transfers and purchases made.
Cryptography has a history since World War II, when there was a need to communicate in the most secure way. Since then, an evolution of the same has happened and it has become digital today where various elements of computer science and mathematical theory are used for the purpose of securing communication, money and information online.
The first cryptocurrency
The first cryptocurrency was introduced in 2009 and is still known around the world. Many more cryptocurrencies have been introduced in the last few years and now you can find many available on the internet.
How they work
This type of digital currency uses decentralized technology to allow different users to make payments securely and also, to save money without having to use a name or even go through a financial institution. institution. They are usually run on a blockchain. The blockchain is a public ledger that is distributed publicly.
Cryptocurrency units are often created using a process called mining. This usually involves the use of a computer power. Doing it this way can solve math problems that can be very complicated to make coins. Users are only allowed to buy currencies from brokers and then store them in cryptographic wallets where they can spend them with great ease.
Cryptocurrencies and the use of blockchain technology are still in its infancy when considered in financial terms. Many uses may emerge in the future because no one is told what else was invented. The futures of trading stocks, bonds and other types of financial assets could be well traded using cryptocurrency and blockchain technology in the future.
Why use cryptocurrency?
One of the main characteristics of these currencies is the fact that they are secure and that they offer a level of anonymity that you cannot get anywhere. There is no way in which a transaction can be reversed or forged. This is the biggest reason why you should consider using it.
The fees charged with this type of money are also minimal and this makes it a reliable option compared to regular money. Because they are decentralized in nature, they can be accessed by anyone unlike banks where accounts are only opened by authorization.
Cryptocurrency markets offer a new form of money and sometimes the rewards can be great. You can make a very small investment to know that it turns out to be something good in a short period of time. However, it is important to note that the market can also be volatile, and there are risks associated with buying.