Cryptocurrency

What is cryptocurrency?

Cryptocurrency has been a hot topic of debate among businesses, government, and the general public for a while now. It’s similar to currencies like dollars and euros in that it holds value and allows you to make purchases. It’s also quite in terms of creation and use. So, what is cryptocurrency?

It’s totally possible you’ve heard the word cryptocurrency before, but how much do you actually know about it? What is Cryptocurrency exactly? The term has caused confusion for many, and the world of digital currencies can be tricky to understand.

In hopes of clearing up some of that confusion, we’ve prepared a short guide on cryptocurrency that will give you the basics on exactly what it is, how it’s created, and what its advantages are.

Okay, so what is cryptocurrency? The simplest explanation is that cryptocurrencies are a form of digital money which allow you to make purchases online. Unlike regular currencies, they only live online and aren’t backed or controlled by banks and governments. This has advantages as well as drawbacks, which we’ll talk more about later on.

Cryptocurrencies are decentralized and run by a network of computers instead of a single person or a company. The money you own is stored in a digital wallet you keep in the cloud or offline on a PC and can be sent to someone via a computer or a mobile device like a smartphone. Each transaction is recorded in what is called a blockchain that is publicly available to all currency holders.