Simply put, cryptocurrency is digital money, which in some cases is designed to be safe and anonymous. It is closely connected to the Internet that uses encryption, which is essentially the process of converting readable information into an unbreakable code to stop all transfers and purchases.
Encryption has a history dating back to World War II, when communication was needed in the safest way. Since then, there has been a development in it, digitizing today, where different elements of computer science and mathematical theory are used to ensure online communication, money and information.
The first cryptocurrency was introduced in 2009 and remains known worldwide. In recent years, many cryptocurrencies have been offered, and today you can find many currencies available online.
How it works
This type of digital currency uses decentralized technology to allow different users to make secure payments and store money without necessarily using a name or even passing through a financial institution. It mainly works on blockchain. Blockchain is a general ledger that is publicly distributed.
This usually includes using a power source from your computer. Doing so solves sports problems that can be very complex when generating coins. Users can only buy coins from brokers and then store them in encryption wallets where they can spend them very easily.
Cryptocurrencies and blockchain technology are still in the financial thinking phase. In the future, more applications may arise, because it is not possible to say what will be invented either. The future of equity, bond and other financial asset transactions can be negotiated very well in the future using cryptocurrency and blockchain technology.
Why use cryptocurrency?
One of the main characteristics of these coins is the fact that they are safe and provide a level of anonymity that may not get anywhere else. There is no way the transaction can be reversed or falsified. This is by far the biggest reason you should consider using them.
The fees charged on this type of currency are also very low and this makes it a very reliable option compared to the traditional currency. Because they are decentralized, they are available to all rather than banks where accounts are opened only with permission.