With virtual currencies \ cryptocoins recent numbers, it’s evident why so many people want to be part of this digital investment market. That’s why the number of people who are curious about the famous digital coins grows.
And you, do you know what cryptocoins are? How do transactions involving virtual currencies work? What are the benefits of cryptocoins?
If the answer is no, then I recommend that you continue reading this post to the end and find it out:
- What are virtual currencies / cryptocoins?
- Benefits of cryptocoins;
- How transactions involving cryptocoins work;
- How to get cryptocoins;
- Why investing in cryptocoins can be a good deal
What are virtual currencies / cryptocoins
For those who do not know it or have never heard of it, virtual coins / cryptocoins are nothing more than digital coins, which are based on cryptographic protocols and are distributed and controlled by their developers.
In general terms, cryptocoins represent a new way of effecting transactions in the virtual environment. Unlike conventional money, they are not controlled by banking institutions or the government.
Benefits of cryptocoins
Currently, virtual currencies/ cryptocoins are already used to buy or to sell products and/or services in stores that allow payments with digital coins, and more and more big companies are accepting it.
Its use ends up providing a series of benefits for those who invest in this type of currency. And you can think of:
- Reduced interest rate
Transactions involving digital currencies have much lower interest rates compared to physical cash transactions. This is good for people who want to start investing in digital currencies.
- Transfers with lower fees
Another advantage that virtual currencies / cryptocoins can provide is the fact that money transfers on the network can be made with lower fees. This is as opposed as it usually happens in transfers involving physical money.
- Safer transactions
Because transactions involving digital coins involve encrypted codes, this type of transaction offers greater security to its users, since financial frauds are almost impossible.
With so many benefits like this, it’s easy to understand why virtual currencies / cryptocoins are being increasingly used in financial transactions around the world.
Check out the following topic and understand how financial transactions involving the famous virtual coins work.
How cryptocurency transactions work
To perform a virtual coin transaction, you must initially have a digital wallet, also known as a Wallet. This wallet can be installed on your computer or on your mobile device, so that you can carry out transactions with cryptocoins.
These digital portfolios are managed by a software, which creates encrypted codes, that is, a sort of address composed of numbers and letters, both for sending and for receiving the cryptocoins in the transaction.
This address serves to identify the public part of a pair of digital keys, since the private part of the key is evident only to the person who is receiving the digital currency.
Each transaction takes an average of 10 minutes and is concluded with the mining of the cryptocoin. This can be done by miners, that is, people who have powerful computing equipment, where the system will be run with the algorithm responsible for validating the transactions.
The product of this process is the so-called “hash”. Hash is nothing more than a code, which must be accepted by the network of cryptocoin transactions.
With each confirmed transition, a commission is generated for the miner, which enables the creation of new digital coins.
How to get cryptocoins
Nowadays there are several ways for you to get virtual coins / crypto coins. You can, for example, acquire digital coins by buying in an online marketplace.
This purchase can be made directly with the local currency on sites that sell digital coins. Another way to get crypto coins is through mining.
But because mining requires adequate equipment and a more significant investment, then this may not be the best option for obtaining virtual currencies, especially for those who are starting now in this market.
Investing in cryptocoins can be good deal
Although cryptocoins are still new to some people, investing in this innovation can certainly yield good results. But it is crucial that you know well what each virtual currency offers and know the characteristics of each coin so you can make investment informed decisions, evaluating carefully the risks/benefits of each coin.
Using a good cryptocurrency exchange platform can help you to take the best of cryptocurrency trading. Find out Trade by Trade, a great cryptocurrency platform.
The views provided in this blog are purely informative and may reflect some author own views and opinions, in a given time and market situation. This should not be used as investment advice. Investing is your own risk and should be done after your market analysis.