A cryptocurrency is a digital, encrypted, and decentralized medium of exchange. Unlike the U.S. Dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, these tasks are broadly distributed among a cryptocurrency’s users via the internet.
What makes up a crypto asset?
While the definition is fluid, there are several features that typically make up a crypto asset: Cryptography: This is where the term “crypto” comes from. A cryptocurrency (or crypto for short) utilizes cryptography, which are techniques for securing information or communications. Cryptocurrencies use what’s called public key cryptography.
What is a crypto exchange & how does it work?
Cryptocurrency exchanges allow customers to trade cryptocurrencies for other assets, such as conventional fiat money, or to trade between different digital currencies. Crypto marketplaces do not guarantee that an investor is completing a purchase or trade at the optimal price.
Why is crypto important?
Cryptography plays a vitally important role in allowing users to freely transact tokens and coins between one another without the need for an intermediary like a bank to keep track of each person’s balance and ensure the network remains secure.
