Log In Get Started
Log In Get Started
image not found
INTRODUCTION TO

Cryptocurrency

image not found

What is Cryptocurrency?

Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates on a decentralized network of computers. Unlike traditional currencies issued and regulated by governments and central banks, cryptocurrencies operate on technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.

Know More
Some key characteristics of cryptocurrencies:
  • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning there is no central authority or government controlling them. This decentralization is achieved through blockchain technology.
  • Cryptography: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units. This ensures the integrity and security of the currency.
  • Blockchain Technology: Most cryptocurrencies operate on a blockchain, which is a chain of blocks that contains a record of all transactions. Each block is linked to the previous one, creating a secure and transparent ledger.
  • Limited Supply: Many cryptocurrencies have a finite supply, meaning there is a maximum number of units that can ever exist. For example, Bitcoin has a cap of 21 million coins. This limited supply is often designed to mimic the scarcity of precious metals like gold.
  • Mining: Some cryptocurrencies use a process called mining to validate transactions and secure the network. Miners use powerful computers to solve complex mathematical problems, and in return, they are rewarded with new cryptocurrency coins.
  • Wallets: Cryptocurrency wallets are digital tools that allow users to store and manage their cryptocurrencies. Wallets can be software-based (online, desktop, or mobile) or hardware-based (physical devices).
  • Volatility: Cryptocurrency prices are known for their high volatility. Prices can experience significant fluctuations within short periods, which can present both opportunities and risks for investors.
  • Use Cases: Cryptocurrencies can be used for various purposes, including online purchases, remittances, investment, and as a means of transferring value across borders without the need for traditional banking systems.