How to use cryptocurrency
Cryptocurrency, a virtual coin designed to use cryptography for securing information’s these has being forecasted to outshine the traditional currency with time, as the ecosystem tends toward cashless society. The usage of these digital currency requires authorization from the decentralized system run by a network of users to authenticate an individual transactions. Cryptocurrency are built on a platform that possess high immutability, stability, transparency, durability and trust with other good features that comes with it. The advent of crypto-coins has facilitate transfer of funds between two parties with the aid of public and private keys for security purposes.
The first cryptocurrency announced to the public is “bitcoin” designed as a store value on its blockchain technology, these has given it the ability to possess a unique characteristics “explosive growth rate” which alternative digital currency inherited by defaults.
Presently there are over 800 cryptocurrency in the digital market being used by various investors to trade however, the high volatility value which is inherited from the “mother crypto-coin”, has given opportunity to platforms to arise and proffer solution to the alarming issue “volatility”, this has made the mainstream frowned at it that is, in terms of its adoption.
Then comes ethereum coin built on a platform known as “smart contract”, the blockchain technology in which ethereum is built on has the capability to satisfies itself and host every other alternative cryptocurrency, the fact that bitcoin and alternative cryptocurrency has a huge impact on the growth of global economy still stands. But the explosive value of bitcoin and other alternative currency such as Cadano, ethereum and ripple have been criticizes deeply by the likes of Lloyd Blankfein and Goldman Sachs, referred to it as a modernized medium of fraudulent act.
To mitigate the rate of fraudulent activities associated with cryptos has led to the suggestion of new regulations regarding the adoption of cryptocurrency. In the European Union, it has being stated that regulating the industry “digital coin” by the financial services agency will aid to combat fraud so as to keep the innovation boom.
Recently on the 21st of January 2017 the president of European central bank organized a session as part of the third youth dialogue through a series of videos to discuss the pros of cryptocurrency over the conventional currency that has been adopted in the society for ages as a means of transacting, and also to share views with the youth on the new technology. Cryptocurrency could be used in diversify ways.
Hopefully, when more countries and financial institutions come to realize the positive impact of cryptocurrency on the economic growth then, it will trigger considering the idea. Alternative coins will come to lime-light in short time, as oppose to the harsh reactions.
Trading with cryptocurrency
To trade means to exchange product or services from one entity to another, technology has made it easier to trade in the digital world where cryptocurrency leverage “smart contract” to disintermediate all transactions, gives individuals the opportunity to facilitate transactions irrespective of their location worldwide by eliminating third-party to mediate the process. Cryptocurrency is a credible currency established on a decentralized platform, so many of these currency to make trading more convenient.
A digital coin Tradoves cryptocurrency “BBcoin”, the first trusted business to business token that offers a more preferable mode of payment between international traders with a considerable low charging rate and these has totally eliminate the stress of going to bank. Another futuristic digital currency, the fourth largest bank in the world ‘MUFG’ to create MUFGcoin that gives room for person to person transaction and shop at a very low rate.
Cryptocurrency as a digital assets
Digital assets or asset tokens are resource of high economic value which an individual possess with high hopes that it will provides future profit or cash flow. In company’s assets are stored on balance sheet but talking about cryptocurrency it is stored on a distributed database ledger a “digital ledger” built on platform with high immutability and temper-proof features. Cryptocurrency are generated through a model called TGE to assist like mind interested in either short term or long term. These digital asset can either be liquidate, serves as investment and also a store of value.
Liquidate asset
To liquidate simply means to convert asset in to cash or when an investor decides to close-out a position on a particular security, an individual may decide to liquidate assets such as house and land for cash which could then be used to pay off creditors due to financial bankruptcy or invest in some other project. A liquid market is a market with many bids and offers, a reasonable spreads, and low explosive growth rate.
Investment
When thinking of investment an individuals should be able to count on a market that possess a steady growth, investment can be in small or large sum but the contending issue is that we must not lose. Digital currency can be used as a long term investment for those who want to acquires and hold for its future benefits, and also a great opportunity for those who want to move from job security to financial security. Crypto-coins or rather a cryptocurrency are now built on blockchain technology as investment hedged with a reliable -“blue-chips- as a security backup for the digital coin, of all the numerous cryptocurrency, cryptFcoin is one of those digital coin that exhibit such unique characteristics.
Furthermore, some platform has innovate an interesting ideas to mitigate the issue of high volatility rate of cryptocurrency and also to make cryptocurrency investment a long term. Unlike the Bananacoin, the coin is hedged with 1kg of Banana to regulate the explosive rate of the coin, each tokens are going to be discharge based on the exchange rate of 1kg bananas that is each Bananacoin varies at the pace of 1kg of Banana, the main goal of is to make digital coin especially the Bananacoin to be stable in digital, to makes it easier for people to acquire tokens and offer investment opportunity to different social class.
Store of value
Cryptocurrency is a digital asset relied upon to save guard economic value of an individual or business partnerships, it can be used as wealth preservation without much care about whether it appreciate or depreciate over time. There are other store of value such as: precious metals (silver, gold, diamond, platinum etc.) real estate, collectibles, Gemstones etc. is a derivative of an asset that can be kept, reclaim and exchanged which serves as future profits or benefits.
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I did not plagiarise, the article also exist on my medium page @easepain. It is my writeup i am the rightful owner
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