Nature of electronic or virtual money
The basic nature of cryptocurrency is to secure and create ease of operation for each public transaction that it entails. Further, it serves as a decentralized control system which is in sharp contrast to the typical central banking system such that everyone must do his or her job correctly. It means that each participant gets their work done through a distributive ledger technology commonly known as blockchain. It also means that there is complete transparency of all the transactions that happen on the network and one participant can quickly look at another’s account balance.
Every transaction that goes through the distributive ledger or blockchain has the sender’s and recipient’s wallet addresses. In other words, a cryptocurrency exchange acts something like a stock exchange although only a miner of cryptocurrency can confirm a transaction and allow it to spread through the network. Once such a transaction is spread, then it becomes locked or irreversible. It means every single node of this network adds the transaction to its database.
Pros and cons of cryptocurrency
It is important to know that the Central Banks of any country does not authorize cryptocurrency as such. They sell them in the virtual world by using fiat money especially the USD as their initial source. Meaning that it may be subject to certain restrictions in the future. Again, for participants, this means that they are doing so at their risks.
However, the cryptocurrency network has improved its legitimacy due to its secure and swift transfer of funds. Several well-known online retailers offer digital currency as a form of payments. This makes shoppers do their purchase with greater ease than the regular online banking system.
For starters in cryptocurrency trade, it would be better to carry out their transactions in popular cryptocurrencies. It allows a person to invest and trade directly using only a single platform. Word has it that in the market that cryptocurrencies are substitutes of real money as well as it being a source of huge funds from the world over.