What is cryptocurrency? Encryption and p2p advantages.

What is cryptocurrency? Encryption and p2p advantages.

What is cryptocurrency? It’s a basic question asked by almost every beginner. So we are here to explain you about its basics and how Swissblock makes it easy to buy and sale the cryptocurrency with zero fees. This is our first blog on cryptocurrency basics including encryption and p2p advantage. In this series you will learn about crypto buying, selling, deposits, withdrawals, risks and much more in next blogs. But basically what is cryptocurrency? Cryptocurrency is digital money where every transaction is verified and recorded on blockchain. This information is accessible by every person with a regular computer and internet connection. Cool, seems a simple thing, but isn’t all currencies being used today in form of ATM, debit cards, our phones are digital? Well, Yes but it is backed by fiat currency whether its $, £, or €. These are all fiat currencies controlled by governments in centralized system. A big attraction of cryptocurrency is that it’s decentralized and not controlled by any centralized authority like fiat. Let’s break the crypto part into 2 parts. Crypto is related to encryption and P2P related to peer to peer transactions without any third party involvement. what is cryptocurrency

What is cryptocurrency encryption?

Encryption of crypto is term used to define that every transaction is encrypted and can be traced back through blockchain. The transfers are trusted and secured. There is no way you lose your money or get it stuck until unless you put wrong address or forgot your seed phrase. Well, secure transfers cannot protect the value of cryptocurrency because it works on demand and supply system. This is the reason why the price can go that much higher and that much lower with bigger swings than fiat currency.

What is cryptocurrency and p2p relation?

Transactions between wallets work on p2p principle. In this era, world moves faster while the money still follows the same old rule of slow progressing between traditional banks. Cryptocurrency has the potential to solve these problems due to fast movement of crypto. Thus crypto has the potential due to cheap, fast and secure system. This includes international transfers as well without any requirement of IBAN. Here is the good news that Swissblock also gives you the option to choose either to pay via crypto or bank (IBAN) without any headache of downloading two different apps and making accounts of different apps. According to a report by brink news, 1.7 billion people don’t have a bank account or cannot access bank. So having a crypto wallet can solve this problem and provide this huge number of people with modern financial technology. As this currency is not controlled by governments or banks so we can deduce that crypto is also a great way to combat issues resulting from centralization issues like hyperinflation and corruption-but proper assessment of these issues are important before implementation. If this seems good to you as it seems to us, you can understand the importance of crypto and its problem solving power. So we are striving hard to make it accessible to every person by introducing easy sign up features of Swissblock exchange. We also suggest to first undergoing its risks before getting into it. Here are the potential risks. We will be up with more basics of crypto and its working. Stay tuned for further understanding of what is cryptocurrency.

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