Cryptocurrency refers to a form of digital asset which works as a medium of exchange. Basically cryptocurrency is a form of digital currency used for trade. Asset management in this case is the form of managing this asset (cryptocurrency). This currency uses cryptography in its transactions. Cryptocurrency asset management is the management of digital assets. In this day and age, money no longer has to be in physical form. The act of walking around with hard cash is being phased out by digital currencies, where transactions are carried out digitally. This is an era of convenience.
The idea behind these cryptocurrencies is that they are not backed by any particular central government or bank. There is no central authority when it comes to these cryptocurrencies. They can be accessed by anyone. They have brought about a lot of convenience since they are globally used.There are different types of cryptocurrencies. The most common one is the bitcoin, which was the first to be invented by Satoshi Nakamoto. Other types of cryptocurrencies include: Litecoin (LTC), Zcash (ZEC), Ripple (XRP), Ethereum (ETH), Dash and Monero (XMR).Litecoin was invented second after the bitcoin in 2011. It has a payment network that is global and has no central authority, just like the rest of the cryptocurrencies. Zcash, unlike the rest of the currencies, focuses mostly on its clients’ privacy through transactions that are shielded. Ripple transactions are less costly compared to the rest of the currencies.So how do these cryptocurrencies work? These currencies are traded for services or goods just like normal non-digital currencies like paper money. This is done by vendors who accept these currencies as payment. There is exchange of currency with services or goods and it is done digitally. The upside of using this form of transaction is that it is very convenient. People no longer have to go to ATMs to withdraw money. It is also secure since there is no carrying around large amounts of money. They are also universally recognized, making them very popular since global transactions are now very easily conducted.
How does a cryptocurrency wallet work?
Cryptocurrency wallet is a software which is programmed to enable cryptocurrency network users to store their public and private keys and also keep a record of their transactions. The wallet also enables the users to send and receive cryptocurrency tokens/coins. Cryptocurrency wallet doesnâ??t store any â??tangibleâ? currency, but rather keeps a record of the transactions that take place on a specific blockchain. Therefore, the user is able to monitor the balance of his or her digital coins.By receiving digital coins into a cryptocurrency wallet, it means that another holder of the digital coins has signed off the ownership of the specific amount of coins to the public address of your cryptocurrency wallet. The vice versa happens when you send digital coins to another personâ??s cryptocurrency wallet. When you send digital coins, you simply sign off the ownership of the digital coins to the public address of the other user. The public address is a â?keyâ??, alphanumeric characters (Numbers and letters) that help in identifying the ownership of the cryptocurrency wallet.Every cryptocurrency coin holder must have a wallet that can store the specific cryptocurrency tokens he/she holds. For example, a Zcash coin holder will require a Zcash compatible wallet to store his/her Zcash digital coins.There are a variety of cryptocurrency wallets, depending on where they run from. These include: Desktop wallets, online wallets, mobile wallets and hardware wallets. Desktop wallets are downloaded and installed on a computer and can only be accessed from the computer on which they are installed. however, to use the wallet, the user must be connet to the internet.Online wallets run on an online cloud platform and can be accessed from any computing device. Since they are controlled by a third party, they are more vulnerable to hacking.Mobile wallets are mobile apps which run on the mobile phones. They are much lighter and can be used from any geographical location as long as the user has his/her phone with them.Hardware wallets are cryptocurrency wallets that store the private key as well as the transaction records on a hardware device. However, the user will have to access an online portal for the wallet so as to use the hardware device.