Innovation is the need of the hour and innovative technology has done boom in every sector, making life’s easier for all. Cash has become less preferred amongst consumers and companies,thereby making cashless payments more prominent. Alongwith the usage of smartphones, cryptocurrency is the latest payment system on electronic platform.
Where Bitcoin is been known to many up till now as it was the first Cryptocurrency. Others are also moving ahead in the race and gaining popularity now among 2000 cryptocurrencies.
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About Cryptocurrency
Cryptocurrency is a peer to peer system which allows its users to send and receive payments and it is not dependent on banks for verifying transactions. Therefore payments done via cryptocurrency are there as digital entries for database online. Cryptocurrency is being stored by an individual in their wallet and on transferring cryptocurrency funds, public ledger is used for listing transactions concerned with transfer. Advanced coding is used for retrieving and storing cryptocurrency data between public ledgers and wallets of its investors. This clearly shows that cryptocurrency uses encryption for verifying transactions.
Analysis of security with Cryptocurrency
Blockchain is the trending technology which is used by cryptocurrencies and that is legal technical process, which involves digital ledger of transactions made with trading with Cryptocurrencies. This digital technology (Blockchain) has been discussed in our earlier Blog post as ‘About Cryptocurrency’ one, discussing about its importance. To check the viability of transactions done with cryptocurrency, one has to go through two factor authentication criteria as to not only using Username and Password for initiating any transaction but also have to use authentication code, which would be send on respective cell phone through text. Apart from all this authentication, still Cryptocurrency is under threat of various online hackers.
Points to be taken care for safer investments in cryptocurrency
Few experts are of view that Cryptocurrency is much riskier for investments, although knowing the fact that investments are speculative. Digital currencies are no doubt most trendy commodities and according to CNBC rough estimate, by the end of 2018 cryptocurrency exchange market would reach $1Trillion. However one should keep in mind the following tips before investing in cryptocurrency:
• Awareness of cryptocurrency exchanges before planning to invest in same as there are round 500 exchanges from which one has to decide which exchange to invest in. Therefore, complete homework is essential before entering the exchange market as to go through individual exchange review and have thorough discussion with experienced investors.
• Effective way of storing digital currency is essential to make investments more secure and for that digital wallet is the remedy. As there are various kinds of cryptocurrency Wallet having their own technical requirements, security and advantage. So before investing, one should be clear with the appropriate storage choice.
• Investments being diversified are healthy in any ways as to invest in cryptocurrency as well. For instance one should not involve entire amount in Bitcoin, only cause it’s been popular or known. Variety of options are waiting to be used appropriately and this could be done by spreading investments abruptly amongst various currencies.
• As cryptocurrency market is speculative, one should be aware of its ups and downs. If in case mentally or financially if you are not finding it easy to handle cryptocurrency, then most probably you have not chosen right currency. Investments with new currency or things are challenging, so one should be aware of its pros and cons.
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