What is Cryptocurrency and how could it benefit you?

T he term cryptocurrency refers to a digital currency that is created and managed with advanced encryption techniques known as cryptography. With the creation of Bitcoin in 2009, cryptography took a leap from being a theoretical mathematical concept into a virtually real currency. While most people only know of Bitcoin, there are quite a number of cryptocurrencies used in the market. Some of the most popular include Ether, Litecoin, Ripple, Dash, Dogecoin, and Peercoin. Simply put, cryptocurrencies are a form of money that buyers and sellers can exchange for goods and services without involving a third-party such as a bank. There are many benefits of cryptocurrencies. The most notable are: 1. Because a cryptocurrency is digital and cannot be reversed arbitrarily or counterfeited, using cryptocurrencies prevents fraud and such losses as credit card charge-backs. 2. When purchasing goods or property using cryptocurrency, the blockchain technology introduces contracts that are designed and enforced without involving a third-party. 3. There are usually no charges involved in carrying out transactions between two parties. This is because the miners are compensated by the network. 4. Unlike using credit cards, a buyer essentially gives access to a merchant to his/her account, authorizing them to deduct a certain amount of money. With cryptocurrencies, the buyer sends the exact amount they want to pay to the merchant. 5. Cryptocurrencies are free for use by everyone in the world. Cryptocurrencies in general has come a long way but still have a long way to go before replacing cash and credit cards, but it is worth investing in them now.