{"id":11399,"date":"2023-05-13T16:37:26","date_gmt":"2023-05-13T11:07:26","guid":{"rendered":"https:\/\/www.goseeko.com\/blog\/?p=11399"},"modified":"2025-06-02T20:44:11","modified_gmt":"2025-06-02T15:14:11","slug":"crypto-currency-a-digital-currency-in-financial-database","status":"publish","type":"post","link":"https:\/\/www.goseeko.com\/blog\/crypto-currency-a-digital-currency-in-financial-database\/","title":{"rendered":"Crypto currency: A digital currency in financial database"},"content":{"rendered":"\n

Crypto currency is a form of digital currency, where the exchange of currency takes place only through the internet. It is not under any central authority, such as a government or any financial institution, to control or to manage it.<\/p>\n\n\n\n

 It is a decentralized system, where there is no intermediary for exchanging of funds between two entities.<\/p>\n\n\n\n

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\u00a0\u00a0Figure image: Bitcoin<\/p>\n\n\n\n

Operations on crypto currency<\/h2>\n\n\n\n

It does not exist in physical form. Crypto currencies are generally decentralized control, where centralized currencies are minted, or created, or issued by a single authority.<\/p>\n\n\n\n

It works by block-chain technology<\/a>, where it serves as a public financial transaction database. The first cryptocurrency is the Bitcoin, which has decentralized also out in the 2009 as open-source software.<\/p>\n\n\n\n

Types of crypto currency<\/h2>\n\n\n\n

The various types of crypto currency are on the basis of these four categories, which are as follows<\/p>\n\n\n\n

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  1. Utility<\/li>\n\n\n\n
  2. Payment<\/li>\n\n\n\n
  3. Security<\/li>\n\n\n\n
  4. Stablecoins<\/li>\n<\/ol>\n\n\n\n

    Altcoins and Stablecoins of cryptocurrency<\/h3>\n\n\n\n

    Altcoin is also as alternative digital currency for using of Bitcoin. It means the cryptocurrencies other than Bitcoin is altcoin. Litecoin and Ethereum are the examples of altcoins.<\/p>\n\n\n\n

    To maintain the purchasing power as a stable one, there is another type of cyrpto currency, which is the stablecoins. Its value is fixing to another currency, or financial instrument. It is useful for controlling the volatility of cryptocurrencies and making suitable for common transaction.<\/p>\n\n\n\n

    Advantages <\/h2>\n\n\n\n

    It is easier to manage when compared to traditional banking system.<\/p>\n\n\n\n