VITAL FACTORS THAT DETERMINE Cryptocurrency’s Volatility
Currency as a medium of monetary exchange has undergone a plethora of changes for centuries. Ranging from coins to notes and now digital money, the concept has been through quite a transformation. The latest on this radar is cryptocurrency. Although crypto has been going around for a while now, it’s only in recent times that it has become a buzzword.
A cryptocurrency, in essence, is a virtual form of currency that people use to purchase goods and services. It deploys an online ledger embedded with strong cryptography to ensure that transactions conducted online remain safe and secure. Pretty much a major part of the interest in these unregulated currencies is used for trading.
According to popular market research firm CoinMarketCap.com, over 10,000 different cryptocurrencies are traded publicly.
Cryptocurrency – An Introduction
As mentioned, cryptocurrency is a form of digital currency – a kind of payment that one can exchange online for goods. Many firms have issued their own currencies. These are called tokens, and they can be traded for the goods or services the company in question provides. This may sound very much like exchanging tokens for a ride at the arcade or obtaining chips for gambling operations at casinos. You have to note that you do need real, viable currency to exchange for the cryptocurrency so as to purchase the goods.
The concept functions by means of blockchain – a decentralized, highly secured technology that records crypto transactions. A blockchain is
