What is cryptocurrency:

Cryptocurrency is any form of currency that exists digitally or virtually and uses cryptography to secure transactions.

The adoption of cryptocurrency as an alternative medium of exchange and store of value continues to grow worldwide.

Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. This decentralized structure allows individuals to get a complete control of central authorities. Cryptocurrencies has become the topic of interest among youngsters and most of the individuals wants to invest in a crypto.

We all know cryptocurrency was created by satoshi nakamoto in 2009, the first decentralized cryptocurrency named Bitcoin.

Cryptocurrency has a more democratic way of controlling the currency’s ledger. Cryptocurrencies can be mined from cryptocurrency exchanges. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Cryptocurrencies are stored in digital wallets.

Units of cryptocurrency are created through a process called mining, which involves computer network to solve complicated mathematical problems. If you trade using cryptocurrency, the access of these cryptocurrencies is shared between it’s users and any information shared is transparent in nature. Most of the cryptocurrencies are Supported by technology called as blockchain. Experts say that blockchain technology can serve multiple industries, such as supply chain, and processes such as online voting and crowdfunding. Although it’s a transparent and blockchain technology of trading, you can secure your investment transactions using cryptography. The process incentivizes the miners who run the network with the cryptocurrency.

There are thousands of cryptocurrencies but some of the major cryptocurrencies include, Bitcoin

Ethereum

Litecoin Ripple.

What is Traditional currency

 Traditional currency is a form of money that is centralized, backed, and managed by a recognized government entity. It is also known as flat currency.

Traditional money is money which is issued by financial authority of a country. Traditional currencies rely on centralized entities like central banks, commercial banks, governments, payment processors like VISA or Mastercard, and other intermediaries.

Traditional currencies are strictly regulated by the governmental authorities.

This currency came about when governments would mint coins out of a valuable physical commodity, such as gold or silver, or print paper money that could be redeemed for a set amount of a physical commodity.

Fiat money is more stable than cryptocurrencies and other commodity-based currencies. Its stability allows governments to work with the economy against inflation and recession, as well as allow the currency itself to act as a medium to store value and facilitate exchange.

Difference between cryptocurrency and traditional currencies.

Cryptocurrency

Cryptocurrency is a digital currency and it is decentralized in nature.

It allows Bitcoin to be an independent peer-to-peer money system that can function regardless of anyone’s wishes.

Cryptocurrency is a digital means of exchange that is fully secure due to the use of encryption techniques. Cryptocurrency is not linked to or regulated by any central government or central bank and authorities.

Cryptocurrency transactions involves no personal information, and privacy also dramatically decreases the chances of identity theft.

Crypto can be trusted because it is tamper-proof and cannot be spent twice. Cryptocurrency transaction cannot be reversed, cancelled or charged back.

Traditional currency

Traditional money is issued and controlled by central banks and governments. It is centralized in nature and regulated by the central authority.

Traditional currency transactions involves personal information as name, address, phone number etc.

Traditional currency can suffer from double-spending, where the same money is used for more than one transaction.

Traditional money is more stable than cryptocurrencies and other commodity-based currencies. Fiat currency may become vulnerable over time to both inflation and value erosion.

Fiat continues to be one of the most popular tools used by money launderers and other criminals globally

Advantages of cryptocurrency

Cryptocurrency has become extremely popular over the past few years, but many investors maybe wandering

,Why would anyone choose cryptocurrency when their local currency works just fine for most things? Why would someone invest in a cryptocurrency?

There are a lot of advantages using cryptocurrency, here are some of them.

Decentralized

Many cryptocurrencies are decentralized and controlled by the developers using it and those who have a significant amount of the coin or by a corporation to develop it before it’s released into the market. This decentralization helps in keeping the currency monopoly free and in restraint.

Transaction speed is quick and straightforward

This is one of the best advantage of cryptocurrency, sending or receiving money in just a matter of time. Transaction speed is much more faster than a traditional currency. Once the block with your transaction in it is confirmed by the network, it’s fully settled and the funds are available to use.

cut out intermediaries

Blockchain aims to cut all the intermediators, which means there are no payment processing fees.

Secure and private

Privacy and security of individuals have always been a first preference to the cryptocurrency. They use pseudonyms, which are hard to decode. Thus, makes cryptocurrency safer than ordinary electronic transactions

Self-governed and managed

Cryptocurrencies are decentralized every individuals have total control on central authority. This cryptocurrency transactions are stored by miners on their computers, which they get the transaction fee as a gift for doing so.

Bitcoins cannot be stolen

No one can steal Bitcoins unless they have physical access to a user’s computer, and they send the bitcoins to their account.

Accessibility

Using cryptocurrency can allow people who don’t use traditional banking services to easily make online transactions or send money to loved ones.

Protection from inflation

Inflation has caused many currencies to urge their value to decline with time. During the launch of cryptocurrency it is released with a tough and fast amount.

Value of cryptocurrency over fiat currency

However, With cryptocurrency, the transaction cost is low to nothing at all, unlike traditional currencies. cryptocurrency is easy to use, incredibly secured and have low settlement fee. Cryptocurrency is a good option for market investment. With all the benefits cryptocurrency has over traditional currency it’s hard to argue there’s no value in using or investing in crypto. The utility provided by many cryptocurrencies is of great value to many people who value fast and secure transactions.