What is Cryptocurrency? How does it work ?

For long currency is seen as a physical form to carry out the transactions. Now, in the past few decades, with drastic advancement in the field of technology, that outlook towards how we perceive currency has also changed.

Now, digital currencies are gaining momentum.  We are shifting our paradigm from reality to virtual, where the currency is no longer considered as a physical entity.

What is Cryptocurrency?

It is electronic money. A new type of money that is in digital form and is supported by World Wide Web. The properties are similar to physical currencies that allow instantaneous transactions.

What are the popular Cryptocurrency?
  • Bitcoin (BCH)
  • Litecoin (LTC)
  • Ethereum (ETH)
  • Zcash (ZEC)
  • Dash (DASH)
  • Ripple (XRP)
  • Monero (XMR)
How does it work?

Cryptocurrency is encrypted, decentralized digital currency, which can be transferred to other account and is maintained in a public ledger.

Benefits of Cryptocurrency?
  • The transaction fee is much lower as compared to credit card charges
  • Once transaction is done, the business is said to be completed.
  • Speed of processing the transaction is much faster.
  • Easy business for international customer.
  • As credit card is not stored in the local system so financial data is secure.
  • Purchases are not taxed as no third parties’ involvement is there.
Cons of using Cryptocurrency?
  • Lack of knowledge. Still many people are not aware of its working and so it is not widely used.
  • Once payment is done, there is no way to reverse the transaction.
  • There are numerous factors which affect the price of Cryptocurrency on daily basis.
  • As it is not acceptable outside digital world so, when a person needs to use it in physical world the person needs to convert the Cryptocurrency in traditional currency before spending it in physical world.
  • If a hard drive crashes, then your Cryptocurrency would be lost and it can’t be regained and nobody can gain out of it.

You may also like to read about: Digital Asset Management Wallet

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