True to its purpose, technology has continued to ease things for us humans. The world’s economy has it leading its path towards a digital eco-system. In fact, right now, almost all transactions are going paperless including bank transfers and investments.
Digital payments are now starting to evolve worldwide and the latest addition to its sector is none other than cryptocurrency.
What is cryptocurrency and how does it work?
A cryptocurrency can be liked to a typical currency like USD but the thing is, it is a digital kind of medium of exchange. This means that it is basically designed to allow exchange of digital information. According to investopedia.com, cryptocurrency is a decentralized digital or virtual currency that makes use of cryptography to ensure security of information. Because of this measure, the cryptography is a lot more difficult to be forged nor faked. Also, unlike the typical currencies, cryptocurrency cannot be taken by the government away since the central authority is not its issuer.
Since the rise in popularity of digital currency began, more and more people are investing in cryptocurrency for some good reasons. Know some of these below:
- People try out cryptocurrency because it is fraud-proof.
This is the only digital currency which has all the information encrypted through cryptography. Although all confirmed transactions are saved in a public ledger, the identities of coin owners as well as other confidential information are not spoon fed making it hard to counterfeit. Moreover, since cryptocurrency is not centralized, you can say confidently that you own it; not the government, not the bank but you.
- People invest in cryptocurrency because there is a very minimal to zero risk of identity theft.
The public ledger, famously known as the transaction block chain, wherein all confirmed transactions are stored is kept in a digital wallet. This ensures an absolutely accurate balance. Also, transactions are strictly checked to ensure that only the owner is spending the coins in every transaction. With the block chain technology, you can be confident that all digital transactions are highly secured and resistant to hacks and frauds.
- Cryptocurrency is worth a try because it promises immediate settlement.
For instance, Bitcoin contracts can be designed and can impose measures eradicating or allowing third party approvals and external facts. More than that, they can be completed way faster than traditional asset transfers can take. It makes sure that you do not experience the hassle of delays and payments of unreasonable fees.
- Cryptocurrency is accessible to everyone and you are very much invited to grab this great opportunity.
To date, there are about 2.2 billion people accessing the web but cannot or do not have access to traditional exchange systems. In cryptocurrency market, it is totally different. In fact, one of the available systems helping you access it is Kenya’s M-PESA system’s bitcoin device, a mobile app that enables bitcoin transfer and micros financing service. At the moment, one in three Kenyans already own a bitcoin wallet. How amazing is that?
- With cryptocurrency trading, you will not have to worry about incurring unreasonable fees. All fees here are lowered.
As a matter of fact, it is only a rare case that cryptocurrency exchange transactions require you to pay transaction fees. This is because the miners are already compensated by the network. Without the fees, miners can still create and maintain their bitcoin wallets. Bitcoin exchange has a facility quite similar to Paypal, though, and they are likely to charge fees but then again, it is only a rare case and if you must be required to pay, all fees are ensured low.
- Once you invest, you are automatically the owner of your account.
Currently, cryptocurrency is still making its way towards the global system. Majority of the masses are still on the process of knowing or accepting it. You might want to grab this opportunity to lead.