The very existence of cryptocurrency is through the blockchain technology which is so rampant in the financial trading markets today that less said is more. As a medium of exchange, the cryptocurrency uses the digital and encrypted techniques to verify and create the money to buy, sell and transfer money in digital trading. As cyber currency cryptocurrencies have:
- no physical form and they exist on virtually
- there is no central authority monitoring its inflow and outflow
- being in a decentralized network the regulation on them is not very high
- It cannot be redeemed or exchanged for other commodities like silver, stocks, etc.
- use of cryptocurrency has reached a very far network including financial services, healthcare, risk management, government for voting purposes with immediate results and automotive industries to manage the ownership details
The main purpose for the cryptocurrency market to thrive was the fact that money is not an object anymore, and does not have to be in a physical form which has settled in the minds of traders, investors who are using various trading platforms like Ethereum Code to buy/ sell in the electronic medium. Now once the buying/ selling happen and the profit is booked, where is the money or the coin equivalent? It is simply lying in the exchange and how to claim it into the trader’s account, is just by transferring the coins in the digital wallet which one has to open for holding their keys private without being hacked or stolen.
How blockchain in Cryptocurrency?
- someone request for a transaction using the blockchain, high power computer network the validation of the transactions happens in the nodes using the algorithms, once verified the transaction becomes either a crypto contract, currency or other data
- the data once verified creates a new block of ledger, which attaches into the existing blocks which are unalterable and permanent making it a highly transparent and cost-effective way of storing data in the virtual space
Taking advantage of this technology has benefitted the traders, investors and the creators who have worked relentlessly to provide easier modes of using the blockchain technology in their software platforms which enable the users to take the added feature of trading with automated trading robot, and make their life easy while the trading happens in the background of the computer screens.