Cryptocurrency: What is it and Why This Ethical Finance Tool is Halal.

Cryptocurrency is also called crypto. It’s digital or virtual currency using cryptography so transactions are secure. There is no regulating authority or central issuing financial institution like a bank involved. Cryptocurrencies use a decentralized system to issue brand-new units and record transactions.

In a nutshell, this is a digital payment system that doesn’t need financial institutions like banks to verify transactions. It’s a big deal because this peer transaction method enables people anywhere to receive and send payments.

How It Works

This type of currency gets its name because it uses what’s called encryption to verify every transaction. That means all of the data involved uses advanced coding to store and transmit dealings that go between public lectures and wallets. Remember those individual cryptocurrencies are often called tokens or coins.

The bottom line is that “crypto” provides a level of safety and security. That’s part of what makes it halal.  

The Bottom Line

Now that you know what this latest innovation is, you might be interested in getting involved. That generally involves distinct steps.

• Decide Where to Start.  There are several different ways to buy one of these currencies in a safe manner. If you’re a beginner, a centralized exchange is a good idea. These have third parties overlooking transactions to make sure everything is credible. If you’re a practicing Muslim, our Ijara Rent to Own Asset Acquisition Model offers an ethical token that will work toward the Sharia complaint purchase of a home. 
• Decide How To Pay. Thousands of different crypto currencies are traded globally. Look for products you can buy in what are called fiat currencies. If you are buying for the first time, the chances are you’ll need regular money to buy cryptocurrencies that includes the US dollar. As you get more experienced you can trade one type of crypto for another.

Storing your currency is the next step when you’re getting involved as a beginner. It’s important that you protect your purchase from theft or hacks. Usually, that means using online software or physical devices that store your cryptocurrencies in a secure manner. These are called crypto wallets.

Different Types of Cryptocurrency

There are several different types you can use.

• Cold wallets are also called hardware wallets. These rely on devices that are offline. Some of them resemble thumb drives.
• The other option is hot wallet storage. These store your currency online using software.

Interested? Read on to find out how cryptocurrency can be used as an ethical finance tool that’s halal.

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