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Understanding cryptocurrency in a Better Way!

Understanding cryptocurrency in a Better Way!

Understanding cryptocurrency

Cryptocurrency and blockchain technology are two aspects that are basically inseparable.  For starters, blockchain technology has been a phrase that has gained popularity and found its way to our ears in the recent past more than even before. With the rise of more investors showing interest in trading cryptocurrency, the advantages of the blockchain technology in this aspect has been unraveled. Over time, its use in different aspects of operation in life situations may significantly increase owing to the fact that some traditional methods of conducting projects are slowly evolving.

It is only logical that in preparation for the future, blockchain technology spreads its use in our day to day running of financial, health, digital and even food security and supply chain affairs.

Furthermore, the popularity of cryptocurrencies has also resulted in growing interest in trading and investing, which can be safely done on legal platforms such as Bitlevex.

How blockchain works

Being a structure through which transactions pertaining several data are stored and channeled via peer to peer nodes in a connected network, blockchain is an ingenious method to conduct a myriad of life operations including cryptocurrency trade. Each transaction conducted under the blockchain in a digital ledger is made valid and stays tamper proof by authorization using a digital signature of the owner. This makes the blockchain unique and safe in that the information is very secure. This in simplified terms means that, transactional records conducted in this forum can be visualized by the investors; transparency, yet they cannot be altered at all; accuracy and security.

Blockchain popularity

Traditional methods of currency transfer over time have proved to be tamper susceptible owing to the fact that the process is fairly weak. For instance, online money wiring subjects both the sender and recipient to losses as such a process can be interfered with. Such is uncommon in the blockchain operations, since third parties that have traditionally been used in such operations have been conveniently cut out. Transactions in the blockchain tent are therefore faster and less costly in comparison to traditional methods of money transfer. Also using platforms as one, traders are offered a clean user interface. New users are able to navigate through the platform with ease even though you may not have participated in any form of trade before.

In this regard, bitcoin and blockchain cannot be used interchangeably as blockchain simply refers to the baseline technology that supports bitcoin and cryptocurrency operations.

Advantages of blockchain in trade

Owing to the way it has been created and its functionality, blockchain is considered very secure especially if compared to traditional methods of operation in the finance and investment world. The digital feature of owner generated signature in blockchain allows for transactions to be conducted in a transparent manner, thus making it impossible to implement corruption or even alteration of data. This limits fraud instances by a large incomparable margin.

Also since it operates in a decentralized fashion, there is no need to await approvals from governing bodies such as the central banks or even the government itself. After a mutual agreement between the concerned parties, especially in this case, you as an investor or even a trader in cryptocurrency, the decision to buy and sell solely lie on you. This ensures that transactions conducted herein are fast, effective, safe and smooth.

The trading process is also automated. This means that a pre programmed function allows that projections can be made for the future based on the prevailing circumstances that may propel sale and profits, when the criterion is met. According to Forbes, the most common use of blockchain today is the backbone of cryptocurrencies including bitcoin. When people buy, spend or exchange cryptocurrency, the transactions are recorded on a blockchain. The more people use cryptocurrency, the more widespread blockchain could become.

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