There is a reason behind all the hype created around digital currencies over the past few years. They have been considered the ultimate option for investment that can help the investors attain huge financial gains. In this blog, we will cover the methods of trading cryptocurrency to let you know whether investing in this non-fiat money is worth it or not.
What Is Cryptocurrency?
Cryptocurrency is the term given to digital money that has been secured by cryptography. The currency operates through a decentralized network so that people can perform transactions with complete safety. These virtual tokens are identified by ledger entries that are handled and enforced by a widespread internal network of computers.
In crypto, various encryption algorithms, as well as cryptographic techniques, are involved. This helps make the user information and transaction details anonymous. Any communication done in the form of codes, public-private key pairs, hashing functions or elliptical curve encryption remains secure through a large scale network of computers.
The relevant information is only accessible to those whom it is shared with, so they can send or withdraw money conveniently. This makes the process of buying, selling, and exchange of e currency dollars in Pakistan super secure.
Reasons For Popularity of Cryptocurrency:
There are several reasons why crypto is such a common term today. A large number of the population believes that digital money is the ultimate form of currency. The increasing popularity and use of e currency for trading and daily transactions have made it to be perceived as the future dominated currency.
Alternately, the rest of the population is only interested in gaining financial benefits from the fluctuating e currency value. They buy cryptocurrencies and keep it in their accounts until they see the prices roaring, so they can obtain big profits.
The decentralized recording and processing system of blockchain technology in digital currency makes its transactions more secure than traditional methods of payment. Cryptocurrency is resistant to inflation as it is not controlled by a central authority like banks(in terms of fiat money). In addition to that, the divisibility, transparency of affairs and portability of e currency makes it quite trustworthy as well.
The Most Popular Cryptocurrencies:
There are more than, 6700 types of cryptocurrency available in the market today, according to the data of a research website, Coin Market Cap. New coins continue to be introduced in the market, providing investors and traders with more options to invest in. Here is the list of the three most popular types of cryptocurrencies in Pakistan today.
The first-ever cryptocurrency was developed by a group, Satoshi Nakamoto, by the name of Bitcoin. Since then, Bitcoin has been lying at the top of the charts for its consistently increasing value. The network runs on blockchain technology, which includes thousands of computers.
This system does not involve middlemen, and it efficiently verifies each transaction in real-time before processing the payment. It is the most trusted currency of crypto investors and is the best option if you want to hold your coins for a long time.
Other types of cryptocurrencies like Ether and USDT are also widely available in the market. The open-source public blockchain in Ethereum allows the end-user to generate a custom code with the smart contract feature of this technology.
In this network, the major driving force is Ether, which is a coin used for payments and is also used to charge the execution fee for transactions. The reason why blockchain technology uses this cryptocurrency is to prevent wasted codes and create a healthy chain.
Tether eliminates the volatility associated with most cryptocurrencies, and hence is one of the most preferred coins for crypto investors. It is known for its liquidity, and thus adds flexibility to the portfolio of an investor.
Additionally, the currency does not create cost exit strategies for investors, making it one of the best long term currencies. You can buy USDT without worrying about losing a significant part of your investment.
Is Cryptocurrency Legal In Pakistan?
While crypto is legal in most Western countries like the US and UK, some countries in the East have yet to accept this digitalized virtual currency. The currency is not officially legal here in Pakistan. However, a lot of crypto experts like Waqar Zaka and Ziaulla Bangash are struggling to create awareness about it and make it legal.
The good news is that even if it is not completely legal, you can still buy or sell cryptocurrency in Pakistan. If you are interested to invest in this virtual money or are wondering how to sell e currency in Pakistan, PKR2Dollar has the answer for you. We are a cryptocurrency exchanger operating within the region that allows people to exchange their fiat money for digital currency. Visit our website today to find out more on the topic!