What is a cryptocurrency and why you should know about them?

Cryptocurrencies were established in 2009 with the launch of Bitcoin, in response to individuals seeking increased anonymity and control around financial transactions. If you transact through a bank or other financial intuition, a whole range of people have access to this information. With cryptocurrencies, the only record of your finances, until you complete the transaction, is on an anonymous online ledger, accessed via a computer or smart device. There is no central body to authorise or track transactions – these tasks are carried out collectively by the digital currency network themselves. In effect, it’s a private currency, completely decentralised.

Despite a modestly paced entry into the marketplace, mainly due to the sophistication of the equipment required to trade in Bitcoins, there are now around 13.5m Bitcoins in circulation, being transacted by around 2.6m individuals in up to 100,000 transactions a day. It’s not unusual to now see signs in coffee shops and bars offering to trade in Bitcoin and you can even load up your smart phone or electronic wallet at Bitcoin ATMs in London, Bristol and Brighton.

Technology available to bring cryptocurrencies to a wider and more diverse audience, both users and merchants, is moving so fast that new generation of cryptocurrencies, such as LEOcoin, will be able to offer everyday users an even swifter, simpler and more streamlined service than their predecessors. Although you still need a computer or smart device to get involved in the digital currency world, you don’t need expensive add on equipment in order to get going.

Like any new development in society, crypotocurrencies won’t immediately appeal or be relevant to everyone. But rest assured, digital currency is here to stay so if you want to ‘ride the wave’ of the most exciting thing to have hit the financial markets in decades, seriously consider investing in a cryptocurrency.