What Cryptocurrency Is, In Simple Terms

Cryptocurrency in simple terms is an online, decentralized system of virtual currencies that have no central authority. They utilize blockchain technology. Perhaps the biggest differentiator between normal traditional currency and cryptocurrency is that while traditional currencies have a central issuing authority (such as a government-designated banking authority – usually the apex banking authority of the country), cryptocurrencies are absolutely peer dealt and have no such centralized authority. The biggest advantage of such centralization is perhaps that there is less likelihood of governmental interference and oversight over the transactions, making it more reliable and transparent with less transaction costs and fees.

Confirmation is absolutely critical in cryptocurrency technologies. To ensure that a transaction has worked and gone through, it has to be confirmed. Once it is confirmed, unlike traditional transactions, it may not be reversed and is a part of a permanent record of transactions or the blockchain. Miners in a cryptocurrency transaction confirm such transactions and mark them as legitimate, spread them in the crypto network and the node is added to the database. Usually, for their services, miners of cryptocurrency are rewarded with a nominal amount of cryptocurrency – but their role in the entire process cannot be overstated.

What benefits can a cryptocurrency broker offer you?

If you are new to the world of cryptocurrency, you may be daunted by the seeming complexity of the entire process of cryptocurrencies and the technology backing it, namely blockchain technology. However, if you are interested in learning more about an easy method to purchase and deal in cryptocurrencies, or invest in cryptocurrencies, a good way for a newbie to do so is to enlist the help of a cryptocurrency broker and engage their services, especially one such as RoyalCBank. While exchanges are certainly more common currently, that does not make them inherently better. Cryptocurrency brokers provide significant advantages, and those (especially newcomers not entirely acquainted with the crypto process) may significantly benefit from the services of a cryptocurrency broker as opposed to registering in a traditional cryptocurrency exchange.

Why do crypto brokers even exist?

Cryptocurrency brokers are referred to as OTC trading services since the services that a cryptocurrency broker offers are extremely similar and offer the same degree of functionality. One of the biggest advantages that an OTC based functionality offers (while enlisting the help of a cryptocurrency broker) is that it prevents the market from being alerted in case of a large volume transaction involving cryptocurrencies. If you are therefore looking to make a larger volume cryptocurrency transaction, the best way for you to move forward may be to enlist the help of a cryptocurrency broker. Similarly, another huge advantage that a crypto broker offers is not just for those pursuing large transactions, but also for those looking to purchase small amounts of cryptocurrencies. By preventing price volatility, and not needing to wait to be matched with a purchaser or a seller as necessary in case you are dealing with a crypto exchange, crypto brokers provide a huge advantage to those wanting to purchase cryptocurrencies in smaller volumes as well.

Furthermore, the extreme wait period involved in registering with a cryptocurrency exchange is also eliminated while using a cryptocurrency broker. Those who are not familiar with the process of cryptocurrencies also have a tremendous advantage, even if they are not fully acquainted with the concept of liquidity. Especially for those who are new to the process of blockchain technology and cryptocurrencies, enlisting the help of a broker such as RoyalCBank can be tremendously useful, eliminate confusion, and reduce the time involved in the process.

To press on, those who are looking to deal in cryptocurrency in a convenient and time-bound manner may be far more benefitted with the services of a cryptocurrency broker as opposed to registering on a traditional exchange. Another extremely significant advantage is also that often brokers provide additional services and avenues to make the process easier, such as additional payment methods (including the use of credit and debit cards). A greater liquidity pool is also witnessed by enlisting the services of a cryptocurrency broker such as RoyalCBank.

Other advantages of using a cryptocurrency broker

Apart from the numerous advantages stated above, cryptocurrency brokers can also reduce slippage fees and reduce spread as sometimes, exchanges with low liquidity may result in higher spread and slippage fees that reduce your investment and drain your funds. Cryptocurrency brokers, on the other hand, are more easily able to identify the highest liquidity and thereinafter split the costs across the exchanges by obtaining the best market rates. Similarly, you do not have to wait to be paired with someone who wants to purchase or sell cryptocurrencies if you enlist the help of a broker, unlike in an exchange. By finding a reputable cryptocurrency broker, you can eliminate much of the confusion and tediousness associated with dealing in cryptocurrencies.