Cryptocurrency: A Quick Guide

Cryptocurrency: A Quick Guide

'Crypto' is any form of digital or virtual currency that uses cryptography to secure transactions.

Cryptocurrency: A Quick Guide

Quite simply, cryptocurrency is digital money. It does not exist in the real world. There are no physical coins, or bills associated with it. It is not like stocks, real estate, jewelry, art, gold, and other valued metals. Cryptocurrency has no use or value other than the possession of it.  Cryptocurrencies are not associated to valuable assets — they are not tied to anything of value in the real world, and this often causes the ‘value’ to fluctuate erratically. 

By Mahinroop PM

‘Crypto’ Defined

Cryptocurrency or ‘crypto’ is any form of digital or virtual currency that uses cryptography to secure transactions and advanced coding to store and transmit cryptocurrency data between wallets and public ledgers. Cryptocurrencies do not have a central regulatory authority and they use a decentralized system to record transactions. Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. Cryptocurrency is a peer-to-peer system which enables anyone to send and receive payments anywhere in the world.  The cryptocurrency payments exist as digital entries to an online database featuring specific transactions. The transactions are recorded in a public ledger when cryptocurrency funds are transferred and cryptocurrency is stored in digital wallets.

Bitcoin Emerges

The ultimate aim of cryptocurrency encryption is to provide privacy, security and safety. Bitcoin, was founded in 2009, and was the first cryptocurrency. Bitcoin is unquestionably the best known cryptocurrency and is traded like other entities for profit. Skyrocketing prices make cryptocurrency hugely popular among speculative and passionate investors. Other clever and passionate crypto investors use ‘mining’ to make money.

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