Cryptocurrencies are virtual currencies that rely on cryptography to make sure of the security of each transaction. This cryptography helps control the total number of units as well as prevent changes in the code used in cryptocurrency unless such conditions are officially met. Some people think that cryptocurrency is the ultimate savior of our economy. This is all because of the perks that it can provide whilst banks and similar institutions cannot.
Some of the characteristics of cryptocurrencies that are considered unique are as follows:
No involvement of third parties
With cryptocurrencies, there are no such things as third party organizations that can get involved in every transaction you make, just like in Forex Trading. Your transactions will only be between you are the recipient. This makes it a win-win situation. Through the P2P (peer to peer) network, you can easily send these cryptocurrencies and others can also do this thing to you.
Transparency in Cryptocurrency
One of the problems encountered with conventional transactions is when the other party asks for a refund. This is such a hassle. For instance, the buyer already sent the payment before the goods were delivered to them. However, just before the goods reached the buyer, they withdrew the transaction. This fails in receiving the money owed by the buyer.
But with cryptocurrency, you can avoid such situations. Transactions made with cryptocurrencies are irreversible, which means that a more transparent transaction can be made between you and your buyer.
Just like any other wallets, cryptocurrency wallets also facilitates storing as well as sending and receiving funds. There are three types of wallets in cryptocurrency – hardware wallet, paper wallet, and software wallet.
If you want to have a secure wallet with data being stored offline, then the hardware wallet should be the best option for you.
As for popularity and security, a paper wallet is the first in line. The only downside of this wallet is convenience.
Among the three wallets of cryptocurrency, the most convenient is nothing but the software wallet. This wallet can be managed either through your mobile phone or from the desktop.
Checklist of A Reputable Cryptocurrency Broker
- A reputable cryptocurrency broker needs to have at least 2 years of history and good reviews from previous clients just like in Forex Trading.
- A reputable cryptocurrency broker needs to have at least 15 customer support ready to respond to your queries. This aspect is very important especially if you are not very familiar with cryptocurrency. Surely, you will have questions from time to time.
- A reputable cryptocurrency broker needs to follow the regulations stated by the jurisdiction of the country where you are in. This ensures that you are in the right hands and you won’t get involved in fraudulent activities.
- A reputable cryptocurrency broker should give its trader fast access to their money when it gets withdrawn from their accounts. The processing time should not be more than 3 days.
- A reputable currency broker means that they are trusted not just in their country of origin but with other countries across the world. International presence is very important in cryptocurrency.