Digital assets are now being used as investments. Cryptocurrencies can be purchased online using real currencies like euros, dollar etc. The buyer gets coins and tokens of the cryptocurrencies. Bitcoin is the most famous cryptocurrency but there are many kinds of cryptocurrencies available in the digital crypto investment world. Many big tech and finance companies have created their cryptocurrency like Facebook has a cryptocurrency called Libra.
According to Lite Trading Ltd., cryptocurrencies are not only an investment but the cryptocurrency spending is also becoming popular as the currencies are gaining trust. Online retailers like overstock.com are accepting cryptocurrencies. Some major retailers like Whole Foods and Nordstrom, are also experimenting with accepting Bitcoin as a valid source of payment.
Point to note is there can be no duplication of cryptocurrencies. Thus it is easy to track and identify when they are being traded. There is no middleman like a bank or any government involved while the exchange of cryptocurrencies happens between people. There is no authority to uphold the law and the cryptocurrency is easy to purchase and exchange in the digital world.
With no middleman in the transaction it is obvious cryptocurrencies are decentralized i.e. there is no control from either the government or the bank on how cryptocurrencies get produced, valued or exchanged. Thus the cryptocurrencies’ worth depends on whatever people are willing to pay or exchange for them.
The cryptocurrency is stored in a digital wallet. It is in an app or with a vendor from where the coins are purchased. A unique code is used as a private key which is entered digitally to sign off on purchases serving as a mathematical proof that the exchange happened.
Through blockchain technology the cryptocurrencies operate. Blockchain is basically quite a long
receipt which grows with each exchange. It holds a public record of all the transactions that happened concerning the given cryptocurrency.