So what is a cryptocurrency?
Cryptocurrency is a non-bank digital currency used for all kinds of transactions, from buying products and services to real estate. Some examples are Bitcoin, Ethereum, Ripple, Neo, or Litecoin.
This type of currency uses cryptography and is often confused with the electronic currency. The latter is the electronic version of banknotes and coins and can be stored on an electronic payment device. It was used for low value payments, while cryptocurrency is intended for high value payments. Criptocurrency is only in electronic wallets and can only be used for certain types of transactions. It is important to note that transactions in cryptocurrency are secured by cryptography between virtual wallets. I mean, if you want to transfer someone 3 Bitcoin from your virtual pocket into his, the transaction is encrypted with a private key, alphanumeric (and as long as a post day) that prevents it from altering or modifying it. A cryptographic key is made from an algorithm that involves two individual keys, one secret and one public key, both linked to the algorithm. In short, there is nothing more secure than a cryptocurrency transaction. Not even the biggest deals between corporations, signed and approved by five teams of lawyers and three bankers. The effort is minimal and guaranteed satifaction. According to the latest studies, around 10 new coins are being launched on the market every day, and investing in a cryptocurrency brings more returns than investing in a digital one. Something to consider when you later think of an ICO launch as a business idea. You can buy a cryptocurrency or you can get it through mining, but not by yourself. Participants are called “miners”. They check, put on the date and share transactions in a public database, called blockchain (block of blocks), where data is collected and transaction points are linked. Careful! Not everyone can do mining. This operation is particularly laborious and involves not only a good Internet connection and a powerful computer but many algorithms generated by many miners. They combine their processing power to generate algorithms that produce cryptocurrency.
More specifically, what are the advantages of using a cryptocurrency?
Cryptocurrency is something special. It does not hold a central bank, like a common currency. Unlike her less innovative sister, cryptocurrency can always create an encrypted backup. Therefore, she will not dare to steal it because she has nothing to do with her afterwards.
Still good news, it would be that the personal data of those involved in the transactions are hidden. Thieves in the virtual world can not find out. If in the case of coins, a bank card or the money you have online banking is exposed to cardholders or hackers, well, cryptocurrency is completely free of such dangers.
When making a payment in cryptocurrency, your personal data is not associated with the transaction. You can make any transfers anywhere in the world and you do not have to wait until the next day for them to validate and your account to be filled. There is absolutely no limit on the amount for transfers and the commissions are variable. Also, the value of a crypto coin can grow spectacular from day to day.