Cryptocurrency: The Basics Of TradingPosted by: custom | Posted on: March 28, 2018
Change in this world is inevitable. Having said that, even the world of finance is not free from this change. One of the greatest things that shook the way we look at our money is the advent of a new type of currency, touted as the “money of the future”, and one that is going to change the way we do trading. This is no other than cryptocurrency. Questions about how cryptocurrency trading is going to take place, and what this phenomenon is all about would be answered here.
What is it?
Cryptocurrencies are basically digital cash. It came to being as a result of the creation of “digital cash”. Bitcoin is a pioneer in the world of cryptocurrency, and Satoshi Nakamoto, its inventor, simply wanted to develop a “Peer-to-Peer Electronic Cash System” in 2008. One thing that makes it different from other currencies is that it’s decentralized. In other words, there is no central authority, unlike currencies where countries in which they are used have served as its central authority.
How do transactions take place?
Cryptocurrencies thrive using a peer network, with each of these peers having a history of transactions, as well as a record of account balances. This is public key cryptography, and it is primarily a medium of exchange. This is closely related to blockchain technology, as they both make use of a decentralized technique.
What makes it so revolutional?
The reason why it’s been touted to be revolutional lies in the fact that you are able to keep records of transactions. Also, you don’t rely on a third person of some sort, but you rely on mathematics and algorithms for your account to be kept secure. This eliminates risks of people cheating on you or trying to get your money, or tampering your transactions by any means.