What is Crypto-currency?

What is Crypto-currency?

·       A cryptocurrency (or crypto currency) is a medium of exchange using cryptography to secure the transactions and to control the creation of new units.

·       Cryptocurrencies are a subset of alternative currencies or specifically of digital currencies. 

·       The first decentralized cryptocurrency to be created was bitcoin in 2009. 

·       Since then, numerous cryptocurrencies have been created.

·       There were more than 530 cryptocurrencies available for trade in online markets as of 7 November 2014 but only 10 of them had market capitalizations over $10 million.

Features

·       A feature that is typical in cryptocurrency is decentralized control, distinct from a centralized electronic money system such as PayPal. 

·       A cryptocurrency is difficult to counterfeit because of this security feature.

·       Another common feature is that transactions are publicly recorded in a ledger. An example is bitcoin, where all transactions are recorded in the block chain.

·       Cryptocurrencies use various timestamping schemes to avoid the need for a trusted third party to timestamp transactions added to the blockchain ledger.

·       The first timestamping scheme invented was the proof-of-work scheme. The most widely used proof-of-work schemes are based on SHA-256, which was introduced by bitcoin, and scrypt, which is used by currencies such as Litecoin.

·       Cryptocurrencies make it easier to transfer funds between two parties in transactions; these transfers are facilitated through the use of public and private keys for security purposes. 

·       These fund transfers are done with minimal processing fees, enabling users to avoid the steep fees charged by most banks and financial institutions for wire transfers.

·       A major drawback of cryptocurrencies is that because they are virtual and do not have a central repository, a user’s digital cryptocurrency balance can be wiped out by a computer crash if a back-up copy of the holdings does not exist.

·       Since prices are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely.

·       Two types of Crypto coins are mineable & non mineable.

What to do with the cryptocoins

 

Ø We can keep it for future stocks for profits ,trade it on exchange market or simply spend it to buy digital or tangible items or pay for any services that accepted crypto coins.

Ø We can send money to anyone fast,hassle-free & low fees to anywhere in the world,all you need is a crypto address.

Ø There is list of online businesses that accept crytocoin transaction,we can shops anonymously online.

Ø There are over 40 known exchange markets currently operating on the internet,it’s up to you choose or judge the security & reliability of the markets.