Digital Currency What you should know about Cryptocurrencies by vervesys August 17, 2017 it workWhile many have heard of Cryptocurrency, it’s still shrouded in much mystery and misunderstanding. In simple words, cryptocurrency is a decentralised virtual currency that is based on cryptographic software. It relies on public and private keys to make the transfers. These transactions are usually anonymous and untraceable. Similar to cryptography that keeps data secure, cryptocurrency is a form of highly secure digital cash. Not to mention that it is hard to counterfeit. Although the cryptocurrency market has no real coins, the so called digital coins are sold through exchange centres. The value of these coins fluctuates too. Here are a few things you need to know about cryptocurrencies: They are widely used and accepted – and can be used to buy a lot of things It’s very natural to think that since cryptocurrency is a digital currency, it can be used only to be traded with similar currencies, but they are accepted almost everywhere, from online shopping portals to restaurants. Anonymity associated with cryptocurrency One of the reasons for the success of Bitcoin is the anonymous nature of the transactions it enables. Bitcoin addresses are not tied to any user. They do not reveal the identity of the users. The data is transferred through a network of nodes like peer to peer networks and uses random node selection. So the transactions are not traceable unless the nodes can be tracked. Bitcoin is the strongest cryptocurrency Bitcoin is by far the strongest cryptocurrency in the market – probably gained a lot of traction due to its early adaptation. It is said that eventually, it will reach higher values in the market. Cryptocurrencies are unstable Yes, that’s true – cryptocurrency rates keep fluctuating and can sometimes be profitable and sometimes will be a bad investment. Is it illegal? Several countries have restricted the use of cryptocurrency, however, some other countries have regulations as to how they can be used or distributed. It’s always a good idea to check the rules and regulations regarding this currency in your country. What is the future of cryptocurrency? As markets evolve, the future of digital currencies tends to become brighter and brighter. Secure and universal, the rise of cryptocurrency will definitely be a part of the bigger picture.