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Interesting Facts About Cryptocurrency

Cryptocurrency is a type of digital currency in which transactions are verified and records are maintained by a decentralized system using cryptography rather than by a centralized authority. A cryptocurrency is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records and to control the creation of additional coins and to verify the transfer of coin ownership.

Bitcoin,block chain

Bitcoin

Decentralized cryptocurrencies such as bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation. Digital signatures can be used to keep the transactions safe and let other people check that the transactions are real.

Invention,Implementation And Acceptance Of Cryptocurrency

In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash. Later in 1995, he implemented it through Digicash, an early form of cryptographic electronic payments.

In 1996, the National Security Agency published a paper entitled How to Make a Mint: the Cryptography of Anonymous Electronic Cash, describing a currency system, first publishing it in MIT mailing list and later in 1997, in The American Law Review (Vol. 46, Issue 4).

In 1998, Wei Dai published a description of “b-money”, characterized as an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo described bit gold.

In 2009, the first decentralized crypto, bitcoin was created by presumably pseudonymous developer Satoshi Nakamoto. In April 2011, Namecoin was created and in October 2011, Litecoin was released.

Litecoin, cryptocurrency

Litecoin

On 6 August 2014, the UK announced its Treasury had commissioned a study of cryptocurrencies and what role they could play in the UK economy. In June 2021, El Salvador became the first country to accept Bitcoin as legal tender. In August 2021, Cuba followed with Resolution 215 to accept Bitcoin as legal tender.

Merits of Cryptocurrency Trading

The merits of cryptocurrency trading are the following:

  1. Cryptocurrency market hours: The cryptocurrency market is usually available to trade 24 hours a day, seven days a week because there is no centralized governance of the market.

  2. Improved Liquidity: It is the measure of how quickly and easily a cryptocurrency can be converted into cash, without impacting the market price.

  3. Cryptocurrency Volatility: Although the cryptocurrency market is relatively new, it has experienced significant volatility due to huge amounts of short-term speculative interest.

Cryptocurrency merits

Cryptocurrency merits

Demerits of Cryptocurrency Trading

  1. Cybersecurity Issues: As a digital technology, cryptocurrencies are subject to cybersecurity breaches and may fall into the hands of hackers resulting in crypto heists.

  2. Lack of Public Confidence: The value of cryptocurrencies such as Bitcoins can change significantly, so some people don’t feel it safe to convert ‘real’ money into Bitcoins.

  3. Not Governed by Laws: The cryptocurrency market is informal in nature as it is not regulated by the Financial Conduct Authority (FCA). So there are no rules in place to protect your business.

 Demerits of Cryptocurrency

Demerits of Cryptocurrency

Can Cryptocurrencies Be Heisted?

Hacking is the latest way of heisting in the internet world. Are your cryptocurrencies safe? Or is it also under the vigilance of hackers? The increasing number of people taking interest in cryptocurrency leads to a new revolution across the world.

Hacker

Hacker

Cryptocurrencies such as Bitcoin can be heisted from the digital wallet, otherwise, it is very tough to hack their network, which is owing to the blockchain technology which supports it. Blockchain technology do not store data in a single server, it has been scattered to the huge network of computers.

Blockchain of cryptocurrency

Blockchain of cryptocurrency

Though Bitcoin itself is tough to hack that doesn’t mean that it’s certainly a safe investment, there does exist the fear of security dangers at many stages of the trading cycle.

How To Preserve Your Cryptocurrencies From Hackers?

There are various types of measures to preserve and reduce the chance of heist by digital hackers. By preserving your cryptocurrency in offline hardware, you can shield your digital assets from being heisted.

While not in use, you must store your hardware or paper wallet in a locked safe zone. Keep your private keys far from where your wallet is preserved, in places like bank safe deposit boxes or quite safe locations. Try to apply secure and trusted bookmarks in your web browser to access your transactions, wallets etc. You must surely apply numerous passwords on your hardware wallet. Also, one must try to avoid discussing one’s crypto possessions in a public platform and curb one’s public exposure and exploitation regarding currencies.

Public platform -Facebook

Public platform -Facebook

Don’t trust anyone without proper research, otherwise it may trap you in fraud. Carefully observe the name of the company on Google and their previous records regarding scams or complaints filed against them.

Final Thoughts

Cryptocurrencies are used primarily outside existing banking and governmental institutions and are exchanged over the internet.

Therefore, cryptocurrency is a collection of binary data which is designed to perform as a channel of exchange.

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