What is a cryptocurrency & how does it work?

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.

Why is cryptocurrency a good investment?

Cryptocurrencies are digital assets that rely on an encrypted network to execute, verify, and record transactions, independent of a centralized authority such as a government or bank. Cryptocurrency was developed as an alternative to the dollar, and its functions can make it an attractive investment.

What are cryptocurrencies & crypto tokens?

Both cryptocurrencies and crypto tokens fall under this category. Cryptocurrency: These crypto assets are also called crypto coins and are those native to blockchains. So for instance, bitcoin (BTC) is the native cryptocurrency of the Bitcoin blockchain and ether (ETH) is the native cryptocurrency of the Ethereum blockchain.

What is blockchain & cryptocurrency?

What is blockchain and cryptocurrency? At its most basic, a cryptocurrency is a digital asset that utilizes computer code and blockchain technology to operate somewhat on its own, without the need for a central party — be that a person, company, central bank or government — to manage the system.