Updated on October 30, 2017
Cryptocurrency used to be a jargon but now it is dubbed to be the digital currency of the future. This currency is unlike fiat money because you can’t carry it around on your wallet or pockets – this is purely digital or found in electronic databases. This cryptocurrency is not linked to any financial organization or banks.
What Is Cryptocurrency?
This currency makes use of cryptography which converts data into an uncrackable code which is used to track your financial transactions. Cryptography started in the World War II at a time when communication is restricted and people need a way to get information out. This system has evolved into the modern digital times which have combined the power of computer science and math. This is what makes up secure communications and financial transactions online.
The most popular cryptocurrency is bitcoin which was introduced to the market in 2009. Ownership of these bitcoins is maintained in a public ledger called blockchain. Bitcoins are basically released as a form or an incentive for those who add value or process every transaction happening within the blockchain.
Using Cryptocurrency For Digital Marketers
These virtual tokens can be bought and sold in online exhchanges and are now also accepted by selected retailers as payment for purchase of goods and services. There are varieties of cryptocurrencies afloat and one of the popular alternatives to bitcoin is ether of the Ethereum platform.
Cryptocurrencies make use of a decentralized technology that allows users to store money and initiate secure payments anonymously or even without connecting to a bank. They practically function on a distributed type of public ledger or blockchain that records all transaction by currency holders.
The use of cryptocurrency is on the rise especially with digital entrepreneurs. This new form of currency is known for the high level of security it provides to users and also for the degree of anonymity associated to it. Transactions usually have low fees and also are irreversible or can’t be faked in any way which makes it extremely reliable in making purchases or receiving payments rather than relying on conventional forms of currency. Being decentralized, this makes the currency available for anyone to use which is opposed to how banks work.
The Staying Power of Cryptocurrency
This new form of digital cash has taken the business world by storm as the cryptocurrency market has been slaying and making large sums overnight even on small investments. However, the very same risks are faced with trading or investing in cryptocurrencies because of the volatility of the market as well as the risks involved when buying or selling.
A lot of people find the topic of cryptocurrency intimidating but it shouldn’t be if you learn the ropes. There are over 850 cryptocurrencies in the market and knowing what’s on the top list will give you a vantage point on the ways to use and invest on it. People mine, buy, sell, and invest bitcoins, eth, and other forms of cryptocurrencies day-in and day-out. It’s a lucrative economy and it’s not just a hype or a flash in the pan because cryptocurrency is here to stay.