Basic Things About Cryptocurrency

Basic Things About Cryptocurrency

In the current digital era, the term cryptocurrency is already familiar. Although familiar, ordinary people only understand that cryptocurrency is a digital currency. However, it doesn’t just stop there. The reason is, there are still many basic things about cryptocurrencies that Forexsignal30 friends should know. 

Definition of Cryptocurrency

Ever heard of the term digital currency? Well, as the name suggests, this currency is not in the form of physical money. It is a decentralized digital currency that has been developed with an encryption method. This means that payments are made peer-to-peer, aka from the sender directly to the recipient. There is no intermediary between the two.

Even though there is no intermediary, transaction traffic is automatically recorded by the system on the cryptocurrency network so that miners who do the recording will get a commission in the form of digital money used. So far understand? Well, let’s move on.

The decentralized nature of cryptocurrency makes you have to spend deeper for the main capital to jump into the world of cryptocurrency, namely by buying a computer and its supporting devices with special and sophisticated specifications. 

In general, the platform used by which a person can transact with digital currency is the blockchain. Not only people who want to transact, but people who don’t make transactions at all can also use the platform.

Types of Cryptocurrencies

As explained earlier that cryptocurrency is not only one type. There are at least 5 types of cryptocurrencies that are popular among the world community. The types of cryptocurrencies include the following.

  • Bitcoin
  • Litecoin
  • Ethereum
  • Ripple
  • Currency

In addition to the 5 popular types of digital currencies above, there are approximately 1000 other types of cryptocurrencies. That’s a lot, isn’t it?

Cryptocurrency Transaction Mechanism

After you understand cryptocurrency, you must understand the mechanism of this cryptocurrency transaction. The advantage of cryptocurrency transactions is the flexibility of work. You can do it anywhere and anytime using only a smartphone or PC that is connected to the internet. Even when transacting, you don’t have to wait long, it only takes a few seconds for you to successfully transact.

The cryptocurrency transaction mechanism is also quite safe because both parties who make transactions are equipped with digital signatures in the form of private keys. Consider the following illustration.

When you send an amount of digital currency to a recipient, the system will send information to both parties about the amount of the transaction. To continue, both parties who have been equipped with a private key as a digital signature must agree to it. After that, the transaction will be confirmed and stored permanently.

That way, no party will abuse it by hijacking, changing, or falsifying the record because it is equipped with a private key from the cryptocurrency system used.

Cryptocurrencies in Indonesia

Then, what about cryptocurrencies in Indonesia? Indonesia is one of the countries that strongly rejects the existence of digital currency or cryptocurrency. This refusal was confirmed by Law no. 7, Article 1 Paragraph 1 of 2011 that the legal instrument of payment in Indonesia is the only rupiah. 

However, this refusal does not mean that cryptocurrency is illegal in Indonesia. The currency remains legal and can be stored and traded as an asset at personal risk. This is evidenced by the issuance of the Indonesian Bitcoin establishment permit which has now changed its name to Indonesia Digital Asset Exchange (Indodax).

Well, Forexsignal30 friends, those are the basic things about cryptocurrencies that you must understand. Hopefully, with this information, you can understand more about this digital currency and how it works. Hope it is useful! 

About Author: Muh Ikhsan

Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.

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