What Are Cryptocurrencies?

Cryptocurrencies do not rely established financial institutions to guarantee or verify transactions. The computers and users on the network confirm Cryptocurrency transactions. New currency is produced through ‘mining’, and how mining works depends on the currency and varies from one cryptocurrency to the next.

Cryptocurrencies are completely digital, so they can be used in lots of ways that traditional currencies can’t, for example you don't need an account or good credit to use cryptocurrencies. Buying consumables and services is becoming increasingly easier as more and more retailers accept them. Fees for using cryptocurrencies tend to be far less than the processing fees of standard credit cards. It is also possible to make anonymous transactions, with cryptocurrencies your online cash is discreet, and safe to use.

Cryptocurrencies: What To Consider?

Cryptocurrencies are traded in many different ways. Here are the main aspects to consider.

• Volume of Daily Trade

Daily trading volume: the value of the coins that are exchanged daily. A relative high daily trading volume, can indicate a healthy economy.

• Verification

A major difference between cryptocurrencies is their verification method. The longest standing and most common, is called proof of work. To verify a transaction, a computer has to solve a difficult math problem. All this requires a massive amount of energy to operate. Proof-of-stake systems have tried to solve this by letting large share users verify transactions, requiring less processing power.

• Acceptance by Retailers

A few cryptocurrencies are widely accepted, most, however, have more limited acceptance. In many cases, cryptocurrencies are designed for purposes other than retail shopping.

Many stores in capital cities now accept CryptoCurrencies
for purchases just as they accept a normal credit card or cash

Whatever your initial thoughts are, cryptocurrencies are an exciting new financial development. Where the technology will lead? No one knows, but cryptocurrencies sure offer possibilities that traditional cash can't.

Cryptocurrencies Review

Bitcoin is the original cryptocurrency, and although its value is not as high as in the past, it is the most valuable cryptocurrency on the market. Its verification system is resistant to fraud, but it requires significant processing power to ‘mine’.

Peercoin was first conceived as an answer to growing sustainability concerns surrounding another cryptocurrency. Some specialty online retailers take payments in the currency, but these remain few and far between. With a little digging, you can exchange Peercoins for survival gear, video games, jewelry and more. Some charitable companies also accept payments in Peercoin.

Ripple is an entirely new kind of cryptocurrency. Because of its unique architecture, no retailers directly accept Ripple for goods and services, as the Ripple currency is a medium for converting any currency instantly into any other one, without relying on a central exchange. Ripple has the potential to allow for more trade in many existing currencies.

Primecoin is a cryptocurrency that functions as a form of money, uses the processing power of its users to conduct mathematical research. Since Primecoin is a fairly novel currency, its retail acceptance is very low, but using it could grant significant benefits to the scientific community.