Created in 2009, cryptocurrency is still in great demand among people. It is one of the most efficient types of transactions in many cases.
Despite this, many people still ask how it actually works. Is there any set of instructions with which those who wish to understand can use the algorithm of actions?
Well, it is not as difficult as it seems.
Let’s try to explain how cryptocurrency works.
First thing you should know is that you need a wallet for a digital currency to make a transaction.
However, if in real space you need an intermediary – a bank, to complete a transaction, then there is no need for it when you are in digital reality.
The fact is that all your transactions are carried out for a certain period of time and are registered in Blockchain.
What Blockchain is?
Blockchain – is a kind of digital ledger on which the cryptocurrency is based. It consists of blocks and each of them includes the information of previous blocks, so the whole information of the user’s action is in it.
Speaking simply, blockchain saves the information that the user decided to send a determined amount of crypto for the other user’s wallet and that the second user received the amount.
Thus, a certain chain is obtained, which forms the Blockchain.
Purchasing and trading the cryptocurrency
Once you already know about the digital wallet and Blockchain, you can start trading with the cryptocurrency you choose.
That can be done on various platforms such as Binance or different exchange markets like Forex.
When choosing a trade cryptocurrencies on an exchange you should take in consideration the importance of choosing brokers.
The choice of a broker can depend on various criteria like leverage, minimum deposit, security standards, etc. As an example of the best Forex brokers and the key highlights to pick the one, you can read here https://brokertested.com/forex-brokers-philippines
Buying and trading cryptocurrencies seems to be difficult at first sight. But it is not as complicated as many people think.
The article introduced you to the main points of how cryptocurrency works and the key moments of carrying out its buying and selling.
Knowing the basics and combining them with practicing as well as choosing a reliable broker will lead you to the desired result soon. Get acquainted with some tested brokers as a case here http://brokertested.com/forex-brokers-nigeria/.
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.