🧑💻 At this point, the term “cryptocurrencies” has become so puffed up that almost everyone has heard of it. Nevertheless, hardly every user has a complete picture of how cryptocurrencies work and how one can use them to their advantage.
So it pays to take a while and bone up with the top financial trend of this decade.
Primarily regarded as a digital currency, crypto has many facets to it. For one, cryptocurrencies can be defined as a digital currency based on computer code. At this point, the crypto markets swarm with diverse digital currencies. That said, the most popular and widely used currency is Bitcoin. Though bringing new features to the table, all cryptocurrencies have one common property – full decentralization. That means crypto is free from any government regulation and manipulation. All of them function based on P2P Internet protocols.
Another metier assumed by cryptocurrency is a payment system based on blockchain.
Blockchain is a digital ledger, consistent with a chain of blocks, storing transaction data. Sounds somewhat intricate? Well, it is not when it comes to real-life practice. Once a transaction is committed within the ledger, its data is automatically transmitted to the blocks, which are intertwined into chains.
As already mentioned, digital currencies do not have a regulatory body over them, which stands for their primary and most stellar feature, giving way to other specifications. For instance, unlike conventional currencies, digital currencies are not just entries into a database. The thing is that crypto databases cannot be invisibly altered by anyone by any rules you do not know.
The key to such security is unbreakable encryption based on strong cryptography. In the case of cryptocurrencies, dataw protection is ensured by mathematical algorithms, excluding any human factor.
🔵 Speed of transactions
Confirmed in seconds, blockchain-based transactions are instantaneous.
🔵 Global coverage
The space for crypto transactions is boundless. Crypto transactions are carried out in a worldwide network, that differs from the user’s location. You can send digital and receive them from anywhere in the world.
🔵 One-of-a-kind security
Crypto funds are stored securely in a system. The access to the system is only possible via an owner’s private key. Crypto coins are protected by strong cryptography and numbers that are impossible to crack.
Transactions take place between peers in a digital ledger (blockchain). All users making up the chain have access to the ledger, in case they download a full node wallet. While the transactions’ data remain public, the private accounts of users are encrypted. Crypto funds are sent from one digital wallet to another using a private and public password. After that, transactions are queued to be added to the ledger and be encrypted into the blocks.
Besides all the highs and lows that crypto has been facing, one can’t deny that it is here to stay. So whether you are planning to deeply immerse in the crypto world or simply dip your toe into the subject, it pays to know how crypto operates. The world of economic freedom is around the corner.
Copyright © 2021 – All rights reserved.
NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7.
The website is owned by The NAGA Group AG and operated by NAGA Global LLC which is incorporated under the laws of St. Vincent and the Grenadines as an Limited Liability Company (1189 LLC 2021) and is an operating subsidiary within The NAGA Group.
NAGA trademark is operated by NAGA Group subsidiaries, including:
Trade Responsibly: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing you money. Past performance of a NAGA community member is not a reliable indicator of his future performance. Content on NAGA's social trading platform is generated by the members of its community and does not contain advice or recommendations by or on behalf of NAGA.
Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation.
Restricted regions: NAGA Global Limited does not provide services for the residents of certain countries, such as the United States of America, Canada, Vietnam, Israel and the Islamic Republic of Iran.