A Cryptocurrency, a digital currency, or cryptosystem is a pre-existing data created to function as a secure medium of transfer where individual private coin ownership records are kept in a distributed ledger, typically on a remote server, that is accessible only to authorized users. There are several types of Cryptocurrencies. The most popular and often used Cryptocurrencies are peer-to-peer (P2P) Cryptocurrency and Internet Currency. Both of these types of Cryptocurrencies have been in use for quite some time and are gaining more popularity every day.
The major appeal of Cryptocurrencies compared to other forms of peer-to-peer based currencies is the speed with which transactions can occur. With a peer-to-peer Cryptocurrency, an individual can initiate a transaction and be on their way, as fast as in seconds. The protocol of the Cryptocurrency is usually an open source programming code. This code provides the structure of the Cryptocurrency and the infrastructure needed to allow for a speedy and safe transfer of value.
Another appeal of Cryptocurrencies is that they are extremely private. Many people want to keep their information private, especially those who are concerned about identity theft or other criminal activity. The ability to transact securely and privately makes the choice of a Cryptocurrency like bitcoin all the more appealing. A bitcoin wallet allows for easy storage and safekeeping of your personal information including private keys and wallets.
The main attraction to a buyer of a Cryptocurrency such as a bitcoin wallet is the instant gratification that occurs with the sale. Once you have purchased a bitcoin wallet, you will never have to wait for a long drawn out process of acquiring or purchasing another currency again. The entire transaction of course, happens in the privacy and security of your own home. There is no need to even contact your local banks or financial institutions as there would be no need for them to even know about your purchase.
A major factor that drives people towards investing in Cryptocurts such as a bitcoin is the perceived high exchange rate. With a cryptocoin like bitcoins, the exchange rate between virtual currency units is radically different from traditional currencies. This makes it an attractive option to investors who are interested in investing in real currencies but are afraid of the high exchange rate. In many respects, investors would be better served by investing in real currencies rather than investing in a Cryptocurrency.
Although there is a lot of hype surrounding some of the more popular cryptographic currencies, the real value is found in investing in the most trustworthy and secure ones such as bitcoins. Many investors are attracted by the opportunity to invest in something that is not widely known but is predicted to have a huge value in the future. Investing in Cryptocurrencies such as bitcoins gives you the opportunity to get in on the ground floor of things while they are just getting started.