What is Cryptocurrency? A Beginner’s Guide to Digital Currency

“Cryptocurrency” — You hear the term everywhere, but what is it?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is decentralized and operates on a blockchain, a distributed ledger technology. Cryptocurrency is a new and rapidly evolving technology, and it can be confusing for those who are new to the space. In this beginner’s guide, we’ll explain what cryptocurrency is, how it works, and why it is important.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is decentralized and operates on a blockchain, a distributed ledger technology. Cryptocurrency is created through a process called mining, in which powerful computers solve complex mathematical problems to validate transactions and add them to the blockchain. The process of mining is also how new units of the currency are created.

The first and most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, thousands of other cryptocurrencies have been created, each with its own unique features and characteristics. Some examples include Ethereum, Ripple, Litecoin, and Bitcoin Cash.

How does Cryptocurrency work?