What Is Cryptocurrency?
Cryptocurrency is a digital asset used in buying goods and paying for services. The transaction of cryptocurrencies is decentralized using cryptography; this infers that a central authority does not control it.
Cryptocurrencies, often known as online currencies, are digital currencies developed and utilized by private persons or organizations. The government does not regulate them, most cryptocurrencies are considered alternative currencies.
Cryptocurrencies can have their history traced to the development of Bitcoin by Satoshi Nakamoto, the first digital currency.
Cryptocurrencies are stored in a wallet which has public and private, designed to send and receive crypto. These crypto wallets can be either a hot wallet (connected to the internet) or a Cold wallet (not connected to the internet). Crypto can be saved using, paper wallet, hardware wallet, mobile wallet.
The blockchain is a master public database for cryptocurrency that records and preserves all previous transactions and activity, verifying ownership of all currency units at any one moment. Blockchain technology transacting cryptocurrencies is safe as no third party is in control of it.
There are many advantages to cryptocurrency. These include:
Security: digital currencies like bitcoin are secured as it is built on blockchain, and owners’ personal information is not needed in its transaction.
Accessibility: you can access your cryptocurrencies anywhere in the world from your e-wallet without the burden of taking cash with you.
Transparency: cryptocurrencies’ transactions, information, volume supply, the market cap cannot be manipulated as they are published publicly.
Cryptocurrencies safeguard their exchange units through cryptographic protocols, which are incredibly complicated coding systems that encrypt sensitive data transfers.
Crypto can easily be purchased with credit cards for countries that permit cryptocurrencies; some platforms like Coinbase, Paybis, and Cashapp can also be used. With the innovation of P2P, it is possible to transfer cryptocurrencies from one person to another.
To transfer cryptocurrency to recipients for buying goods and services, what is needed is the contract address of the recipient, where all their information is encrypted.
The most popular and first cryptocurrency is Bitcoin. Other cryptocurrencies include Etherium, BNB, XRP, DogeCoin.« Back to Glossary Index