A Better Understanding Of De-Centralized Online Qprofit Currency Trading

The virtual currency schemes have steadily bloomed in the recent years and have become the main attraction point for the regulators and the media.This type of digital value is being used as a means of transactions, payments, and exchanges. It can be safely stored or can be traded through electronic means.

These digital denominations are neither issued by a centralized bank or any public authority nor are they hooked on fiat money. Hence, it is not a kind of legal tender or is visible as physical forms but are increasingly used as a worth unit for maintaining an account. This virtual form creates an independent storage space or account somewhere in the electronic world and can be used as an alternative to fiat money or can be transformed into the physical and existing money forms.

Centralized and Decentralized Currency

There exist two major types of virtual coin schemes of which the centralized one precedes the decentralized kind.

  1. Central type of virtual denomination has such a concerned source and is issued and regulated by a single authority. It can be divided into three categories
  • Non-convertible to fiat money and cannot be used for purchasing purposes like the loyalty points used for playing online games.
  • The Unidirectional convertible type that is bought at a rigid swap price yet cannot be transformed abaft to fiat type and can be used for making virtual goods and service purchase. Facebook credit is an example.
  • Bidirectional mode of currency where the virtual representation of value is bought and sold with respect to the exchange rates with fiat one. An example is WebMoney.This mode allows the ordering of both digital and real goods and services.

This currency is entirely dependent on a third party for generation, regulation, and verification of its unit and their transaction.

  1. De-central type, on the other hand, has no such particular source and is mostly operated in a decentralized manner.
  • This technology is purely based on cryptography and allows the direct online transactions from one party to the other user without any intermediates.
  • Bitcoin is the first variation of this type and its code is free for the public. The transfer of coins is visible to the entire network and the validity of each transaction is unchallengeable.
  • A global ledger, the blockchain concept allows the well-secured and a highly-maintained functioning and transferring of this virtual fund.

QProfit trading uses this decentralized model for currency trading. You can read more about QProfit System and be confident of using it.

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