What is Cryptocurrency?
The market of cryptocurrency seems to have a rapid growth the last years. There are different views around this type of asset, that create doubt and confusion concerning its reliability. Some claim that cryptocurrency is an illegal, unsafe and “bad” currency. Others believe that it is “the money of the future” and that it is worth investing in. But... what is Cryptocurrency?
What is Cryptocurrency?
Explaining the term, cryptocurrency is a digital currency designed to operate as a medium of exchange. It utilizes cryptographical functions to verify, secure and perform financial transactions between two parties. Coin ownerships are stored in a computerized database called ledger and whenever someone receives or sends cryptocurrencies, his/her transaction history is recorder to the system.
Cryptocurrency leverages blockchain technology that decentralizes currencies and allows transparent payments. To put it more simply, financial transactions are conducted without being listed, nor controlled by any central authority, e.g. the government.
WireWallet provides a user-friendly back-office platform, where crypto merchants or individuals can manage their money, exchange currencies and pay out in over 100 international currencies!
What are the benefits of Cryptocurrency?
With traditional payments, money needs to be processed by the bank and… it needs some time (probably days) before it reaches its final recipient. The cherry on the cake is the extra amount of money banks charge you for their transactional service.
On the contrary, crypto allows peer-to-peer transactions without a middleman. Hence the payment process is much faster and transaction fees are lower compared to the service offered by traditional financial institutions.
What was the first Cryptocurrency?
The first cryptocurrency ever released was Bitcoin. This decentralized cryptocurrency was founded in late 2008, as a peer-to-peer electronic cash system, by the presumed pseudonymous Satoshi Nakamoto.
Just like every technological innovation, cryptocurrency has its risks, that are essential to read and understand before someone starts trading.
Some cryptocurrency transactions are anonymous and can even be untraceable. Consequently, the “bad guys” can easier commit fraud, money laundering, and other financial crimes. Passwords can also be hacked, and as a result… thieves can steal all your money!
Another important issue to have in mind is volatility. Particularly, cryptocurrency’s value can have extreme changes, since it is common for the price to quickly drop thousands of euros. Such alterations can lead to the loss of a large amount of money.
Crypto Merchants are known as high risk companies. Money laundering possibilities are extremely high and consequently, traditional financial institutions do not provide bank accounts to such customers. Thank God WireWallet does!
Due to the reasons mentioned above, cryptocurrency transactions are not highly accepted by many people and businesses, as a form of payment. However, if proper precautions are taken, it is possible to decrease some of the risks to a large extent.
Where can Crypto Merchants open a bank account?
WireWallet offers IBANs for Crypto Merchants to help them manage their operational transactions (B2B Account) or their transactions with their clients (B2C Account). If you need more info about IBAN registrations, simply contact us at email@example.com.