Cryptocurrency, a new term coming from the field of finance and accounting, is a type of digital currency designed to function as a medium of exchanges where person coin ownership data is maintained in a distributed ledger system. The term “crypto-currency” derives from the encryption used to transmit the data in the form of a cryptosystem. Cryptocurrencies are considered to be a form of digital money since it can be directly traded by users without the need for brokers, banks, or any intermediary. In essence, anyone with an internet connection can trade the cryptocurrencies for other cryptocurrencies without the need to go through a broker. Since cryptocurrencies can be traded over the Internet, no physical money is involved. Thus, it is also called digital cash.
The main benefit of Cryptocurrencies is that it offers complete privacy and confidentiality and the nature of its system allows for total fungibility. Thus, unlike traditional currencies, no economic power or political influence is attached to the currency being traded. Unlike conventional money, Cryptocurrencies are designed to have no historical artifact to link it to any specific government. In other words, it can be said that Cryptocurrences are anonymous money or digital currency that allows instant transfers, matching, and calculations between multiple parties.
Another advantage of Cryptocurrences is that they can be traded and exchanged at different exchanges and rates than conventional currencies. This feature has made it popular among some types of Cryptocurrency users, as they can buy and sell the units of their chosen Cryptocurrency at any time they like. This feature is available not only for major currencies but also for minor currencies of various countries. This feature of Cryptocurrences is also advantageous for users who want to gain exposure to different markets. Since the number of buyers and sellers is unlimited, they can now enter into long-term investment positions without worrying about how the market will behave.
In the recent years, more new Cryptocurrences are being introduced to the market. As the technology behind Cryptocurrences is getting better, there are possibilities that these could become a mainstream method of trading in the future. However, in this aspect, the question of legality still remains. Some Cryptocurrences such as Dash and Monero have not been approved by the government, while others such as Stellar Lumineer are being hailed as the potential future faces of the cryptocurrences. All in all, it can be said that Cryptocurrences are here to stay for the future.
As of the moment, the major focus of most Cryptocurrences is on the idea of “ICO”, or “ICO token”. These are units of the Cryptocurrency that are being used for Micro Payments, Real Estate investment, Education, Marketing, Corporate Promotion, and other uses. In fact, the entire concept of investing in Cryptocurrencies such as Dash is based on the idea of investing in new “ICO” token, which increase in value the moment the new currencies are added to the market. There are already some popular and well-known Cryptocurrences that are offering newICO tokens for sale, such as MaidSafe, Genesis Invest, and Wealthy Affiliates.
When the word “Cryptocurrency” is mentioned, some people tend to think that it is synonymous to illegal transactions or currency frauds, such as Forex scams. But this is not always the case. Indeed, Cryptocurrences are gaining popularity as an investment vehicle, especially among the general public. The main reason behind this is that Cryptocurrences are highly portable, meaning that investors can easily transfer their money from one Cryptocurrency to another without having to wait for a long period of time. Moreover, since most of the popular Cryptocurrences have a built-in “ICO” program, people can sell their old Cryptocurrency for cash, thus increasing their profits, and avoid any possible Forex scams.