What are cryptocurrencies really?
Cryptocurrency is a form of digital money that is designed to be secure and, in many cases, anonymous. It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers. Cryptography was born out of the need for secure communication in the Second World War. It has evolved in the digital era with elements of mathematical theory and computer science to become a way to secure communications, information and money online.
The first cryptocurrency was Bitcoin. Bitcoin was created in 2009 by a pseudonymous developer named Satoshi Nakamoto. Bitcoin uses SHA-256, which is a set of cryptographic hash functions designed by the U.S National Security Agency. Bitcoin is a cryptocurrency that is based on the proof-of-work system.
In April 2011, Namecoin, the first altcoin, was created to form a decentralized DNS to make internet censorship more difficult. In October 2011, Litecoin was released and became the first successful cryptocurrency to use scrypt as its hash function rather than SHA-256. This gave the general public the ability to mine for litecoins without the purchase of specific hardware such as the ASIC machines used to mine Bitcoin.
How to trade Crypto Currency on optionplug.com?
• Pick the asset you wish to trade.
• Select “Call” if you think the price of the asset will go above your entry price at the time of expiry.
• Select “Put” if you believe the price will fall below the entry price at the time of expiry.
• Sit back and wait for the outcome of the trade.
• Collect your profits if the trade ends in-the-money.
• Move on to the next trade if it ends out-of-the-money.
What are the advantages of Trading Crypto Currencies?
• Better Security Unlike traditional payments, like cash and credit cards, cryptocurrencies are digital and encrypted; you cannot be ripped off in a transaction like you can be with legacy payment systems, and it is much harder to steal cryptocurrency compared to a wallet full cash. In a world where so many of our transactions are online, and our savings and credit rating are at stake at all times, anything that provides increased transactional security is a plus. And there is currently no transaction mechanism that is currently more safe and secure than those that use cryptocurrency.
• Cut Out the Middleman Another great benefit of using cryptocurrency, especially when purchasing real property, is that digital currency can help eliminate expensive brokers, lawyers, and other typical �middlemen� who inevitably raise the costs of already expensive transactions. Cryptocurrency can essentially act like �a large property rights database�, according to one financial expert, and can be used to execute and enforce two-party contracts on items like real estate and automobiles, thus eliminating expensive brokerage and legal fees.
• Access to Everyone in Every Market As more people, including billions of people in the developing world, increasingly use mobile devices linked to the Internet to conduct financial transactions, cryptocurrency is truly going to come into its own. All cryptocurrency is designed for low cost, no-fee transactions, so undoubtedly these digital currencies will become increasingly popular as more people have access to mobile devices to conduct financial transactions. In the late 1990s and early 2000s, mobile phone technology spread rapidly through the developing world, and saturated markets where standard landline telephones had never been established; cryptocurrency is poised to do the same exact thing.
• Universal Recognition If you do business globally, or travel frequently, you are often exposed to exchange rate risk; that is, the transaction can be affected by currency exchange rates. You may also be subject to fees associated with exchanging one currency for another, or find challenges in exchanging currency altogether. Fortunately, with cryptocurrencies like Bitcoin, that is a non-issue, as the digital currency is universally recognized at a given value. This helps to save time in determining a price for a transaction, as well as any fees associated with exchanging money from one form to another. As cryptocurrency is increasingly adopted around the world, it is going to make financial transactions faster and simpler, which is a great thing for everyone involved..
• You Are in the Driver�s Seat One of the best things about cryptocurrency is that, unlike virtually any other type of money retaining system (save for a wall safe or your wallet) you totally own it. Think about it: most traditional liquid asset systems � banks, credit unions, brokerage houses, or even high tech ones like PayPal � take control of your funds and leave you subject to their terms of service. If they decide that you have violated those terms, they can suspend your account. They can change their terms of service, and cause you to have to pay more or receive fewer funds for important transactions. With cryptocurrency, you retain all of the funds on hand, so to speak, digitally, with no third party involvement; the only one who can change the terms of your cryptocurrency use is YOU.