When we buy or sell things, the payment is usually
processed by banks or a credit card company. But the problems with this process is
that the companies often take a cut of the transactions and we have to trust these
companies to protect our data from hackers. To solve these problems, a unique currency was
introduced that guarantees security by being based on the science of cryptography – a math-based
way of protecting information. This type of currency is called a cryptocurrency
and only exists in computer networks.
Since its electronic inception a little more
than a decade ago, cryptocurrency has grown from a largely-unnoticed non-regulated e-currency
to being recognized worldwide for its discretion and accessibility. There are about 3,000
cryptocurrencies being traded with a total market value of Dh812 billion and the reality is the top
10 cryptocurrencies represent roughly 85 per cent of the total market value. Bitcoin, considered
the most liquid cryptocurrency, involves accessing a cryptocurrency exchange that allows UAE
residents to open accounts and trade using them.