Cryptocurrency sometimes called crypto - currency or crypt,is any from of currency that exists digitally or virtually and use cryptography to secure transactions
DEFINITION
Cryptocurrency is a digital or virtual currency that is mean to be a medium of exchange.
Cryptocurrency also is an encrypted data string that denotes a unit of currency. it is monitored and organized by a peer network a called block-chain which also serves as a secure ledger of transaction. e.g buying,selling,and transferring.
TYPES OF CRYPTOCURRENCY
BITCOIN:Is regarded as decentralized cryptocurrency using block-chain technology to facilitate payment and digital transaction.
ETHEREUM: Is a platform that uses block-chain technology to enable the creation of smart contracts and other decentralized application.
LITE COIN:Is generally recognized as the first alt coin.
Advantage
*cheaper and faster money transfers and decentralized that do not collapse at single point of failure.the importance of cryptocurrencies include their price volatility,high energy consumption for mining activities and use in criminal.
*Fraud:cryptocurrencies are digital and cannot be counterfeited.
*Identity Theft:When you give your credit card to a merchant you give him or her access to your full credit line even if the transaction is for a small amount.
*Access to Everyone:In fact, here are approximately 2.2 billions individuals with access to the internet or mobile phones who don't currently have access to traditional exchange.
Cryptocurrency transaction is generally a quick and straightforward process .
DISADVANTAGES
Lack of security:There is no safety net to protect your bitcoin from human error,technical glitches [hard drive failures, malware] ,or fiduciary.
Increase Regulation:Relatively benign guideline are currently in place.
Limited Scaling: The design of the system limits the speed and number of transaction processed.
Lack of Applications:While acknowledging bitcoins popular use for illegal transaction, lee questions how useful bitcoins really are.
Decentralization: A global network of computers use block-chain technology to jointly manage the database that records bitcoin transaction .
Like other medium of exchange,using cryptocurrencies has many advantages and disadvantages but benefits in high than disadvantages.That why using cryptocurrencies is better than others.
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