During the past decades, Dubai has seen an incredible transformation and has become one of the most futuristic cities in the world. Innovative technological projects have been developed in Dubai, including also the issue of its own cryptocurrency.
A cryptocurrency company in Dubai can be a successful one and can be settled in a Free Zone.
A crypto currency is a digital trading currency which uses cryptography to make guarantee the safety of transactions and to generate money. It is not managed by a centralised body. On the other hand, its safety is guaranteed by the blockchain technology.
A blockchain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data.
Compared to the traditional currencies, there are three advantages of the cryptocurrencies:
- Safety: all the transactions are carried out only if the entire network has seen and registered it, thanks to the blockchain, therefore fraud is avoided. It is impossible to corrupt the blocks.
- Quick payments: you can do it in just a matter of a few seconds. It is very fast because you don’t require to feed many details, you don’t even need to enter your credit/debit card details. All you need is the address of the wallet of the person or enterprise to whom you wish to make the payment too. The amount shall credit to the receiver within few minutes. The ease of transfer and the low transaction fees makes it very desirable.
- Privacy: you don’t need to share your identity or whereabouts or the details of the transactions made between you and the beneficiary. No information required to share with the government and the bank regarding the deal. It is truly decentralized. A global network of computers uses blockchain technology to jointly manage the database that records cryptocurrencies transactions and not by any one central authority (bank, government). Therefore, a government can’t confiscate or stop a money transfer or a failing bank takes out the money from a bank account.
It is possible to invest in cryptocurrencies in two ways. One is to buy and resell them, the second is to make trading on line. The first option is highly risky, due to the strong fluctuation of the cryptocurrencies in the market.
In the trading on line, through a broker, the risks are minimised and it is possible to earn both when the market price is up or down.
Cryptocurrency business is destined to develop and for this reason, investors can easily open a successful cryptocurrency company in Dubai Free Zone.