Abstract:
Again, a piece of major news flash on cryptocurrency transactions and the surge in Bitcoin that spotlights the digital world and its impact on the economy. Today’s trending word is cryptocurrency. The popularity of these currencies made the experts think about a large revolution in finance and the future of digital currency. The article is intended for new digital currency and its existence in the current economy. It also reveals the various types and benefits of cryptocurrency with its importance in the digital age. By understanding, how cryptocurrency works and their trading, it is more convenient to recognize their effect on changing world.
Introduction:
We are introduced to the new digital age in recent years that has transformed the world of economic requirements. Digital appearance has a great impact on the physical one and demand for digital has tended to innovative ways for each sector including finance. Digital currency like Bitcoin was introduced as the first cash-like payment system for electronic transactions instead of physical cash. It is popular as a cryptocurrency mainly based on the theory of solving encryption algorithms. A computer network is involved in verifying transactions, while users can exchange unique hashes in spite of physical currency.
In today’s world, the increasing demand for cryptocurrency raised their values and according to the experts, it has an intense impact on the economy. Several studies are focused on their benefits and impact on the economy. With the flash of news of the surge in cryptocurrency, it has become more valuable and trusted by users. Hence the basic need of any market that is reliable and acceptable are fulfilled by the cryptocurrency.
Trade markets are now influenced by the investments of cryptocurrencies as there is a number of cryptocurrencies launched in the market. It is the revolution in trading investments due to the current legal and financial structures. There is a lack of accepting such a digital system as a currency and need to be transformed for adoption and cultivation.
Features of Cryptocurrency:
Cryptocurrency is paperless and easy for transactions making it cheaper and faster. They rarely cause transaction failures due to decentralized systems. Whereas their value is unstable increasing energy consumption and requires technical support. Several advantages of cryptocurrencies are considered for their popularity and higher demands. But consequences of their use have led to be in conflict with the control and demand for setting norms by various governments. However, it is accepted by investors for some good reasons like accessibility, self-ownership of accounts, instant transactions, and accuracy in the blockchain.
It has also set some dangerous challenges of trading illegal drugs, hacking tools, firearms, toxic chemicals, etc. However, financial revolution due to the technology in the blockchain of these currencies with better client information and pricing through repayment system in loans. Therefore, an efficient regulatory framework with innovative ways ensures financial integrity while supporting user protection.
Types of Cryptocurrency:
Despite the Bitcoin has taken up a large crypto market, other currencies are also introduced to compete in the crypto economy including Ethereum- the second most popular, and other currencies like Ripple, Bitcoin Cash, Stellar, EOS, Litecoin, Mintchip, etc. Each one is developed with the aim to ease of use with the help of advanced technology. Though the cryptocurrency is indispensable from Bitcoin, the overall impact of other currencies has led to competition in the market and trying to acquire a large part of the economy.
Journals of economics, finance, and accounting have encouraged the study of investments in cryptocurrencies and their impact on the economy. It has an eye on investors and found that many of them try to attract investments through cryptocurrency. Also, the growth in Bitcoin value made the investors turn to cryptocurrency for better profit. Trading in cryptocurrencies became popular with large acceptance by people and increased use of digital currency due to increased trust.
Investment strategy:
Cryptocurrency investing strategies are mainly explained in two parts. The investors are known as miners and traders according to the process of getting a coin. The miners find the coin with the use of technology and computers algorithm while traders purchase coins that are existing coins. People choose their investors to invest in crypto coins and it needs common knowledge before investment.
Thus, the best trading courses make the investment profitable. It is not only volatility due to price fluctuations but also different investment strategies of trending currencies that should be learned with diversification. Several trading strategies need the market study and basic knowledge of decentralized blockchain systems and programming for algorithms. High skills in investments, technology, and protocols make the Certified Cryptocurrency Experts (CCE) more trusted investors. Their expert-level knowledge includes the ability to develop applications and integrate them with the network.
Attributes of Cryptocurrency:
- Very high Profitability
- Very easy for Convenience
- Anonymity
- High Security
- Manageable Bookkeeping
Impact of Cryptocurrency:
With the increased use of cryptocurrency, the risk of fraud is reduced with extending prospects for business across the world as there is no restriction on local currency. These transactions are accurate and permanent and a rapid rate of transfer upturn the trust. Today, many governments are setting a norm and are ready for cryptocurrency. This will surely make a paperless economy with the safety and security of the currency. Obviously, the investors are tending to future profits through this area of investment. Thus, a cryptocurrency has enforced the physical currency transform into the digital currency for ease of transaction and future growth. It is comparably high growth that fulfills future expectations and changes the digital world’s economy in digital currency.
Reference:
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- 5 Reasons why you should go for cryptocurrency, https://economictimes.indiatimes.com/industry/banking/finance/5-reasons-why-you-should-go-for-cryptocurrency/articleshow/61184608.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- Peter D. DeVries, (October 2016), An Analysis of Cryptocurrency, Bitcoin, and the Future.https://www.researchgate.net/publication/316656878
- The Future of Currency in a Digital World – June 2018 https://www.imf.org/external/pubs/ft/fandd/2018/06/pdf/fd0618.pdf
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