E-currency (electronic currency) is a great alternative for traders. Essentially, it is electronic representation of hard money. This form of currency allow people to purchase goods and services online securely. Everything from credit cards, online bank transfers, online bank accounts, bank transfers, pay pal, etc. are all examples of e-currency we use in our daily lives. And the great thing is that as online commerce continues its rapid growth, the demand for electronic currency will grow with it.
Some of you might be wondering why anyone would accept e-currency as a real form of payment. The great thing about it is that hard currency (US Dollars or Gold) backs its e-currency equivalent. So your credit card transactions done online are backed by real US Dollars. The trader’s opportunity to profit occurs when e-currency is converted to hard currency. I’ll cover it in more detail in the next post, but the fluctuations of the backing hard currency (just like in the forex market) creates profit opportunities.
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