Cryptocurrencies are considered to be ‘digital gold,’ largely because they are secure investments and free of political influence. Cryptocurrency exchange involves peer-to-peer transactions. This means one person pays another via a desktop or mobile device, using a downloaded or browser-based app to initiate and authenticate the transaction and transfer the funds. Mobile payments, which share some commonalities with cryptocurrency exchange, are gaining in popularity and are forecast to reach $142 billion in the U.S. by 2019.
Apart from their value as payment mechanisms, cryptocurrencies have provided investors and speculators access to a dynamic and fast-growing market. This has given rise to exchanges like Okcoin, Poloniex and ShapeShift. The cryptocurrency market is also being used for crowdfunding projects to fund startups through ICOs.