What Is Cryptocurrency?

“Crypto” is a commonly used abbreviation for cryptocurrencies, which are forms of digital currency or digital assets that use cryptography to secure transactions and control the creation of new units. Cryptocurrencies operate on a decentralized technology called blockchain, which is an immutable public ledger of all transactions made with that cryptocurrency.

The most well-known and pioneering term in the world of cryptocurrencies is Bitcoin, which was created in 2009. Since then, many other cryptocurrencies have emerged, each with specific characteristics and purposes. Some of the most well-known cryptocurrencies besides Bitcoin include Ethereum, Ripple (XRP), Litecoin, and many more.

In the context of cryptocurrency trading, people buy and sell these digital currencies in the hope of making profits due to fluctuations in their values. The cryptocurrency market is known for being highly volatile, meaning that prices can change significantly in a short period of time.

How Do They Work?

Cryptocurrency transactions are recorded on a blockchain, a decentralized public digital ledger.

Each transaction is verified and recorded on multiple network nodes, ensuring its security and transparency.

Cryptocurrency mining is the process by which new transactions are verified and added to the blockchain, and is rewarded with new units of cryptocurrency.