- Writer: Hiba Shelleh
- Published: February 27, 2021
- Word Count: 1,141
What is Cryptocurrency?
Curious about this new form of money? Cryptocurrencies are gaining popularity and promise a bright future. By the end of this article, you’ll know more about cryptocurrency than most people.
In this article, you will learn:
- What is cryptocurrency?
- How do cryptocurrencies work?
- How many cryptocurrencies are there?
- Why cryptocurrency?
- Is cryptocurrency a good investment?
- How do I buy cryptocurrency?
What is Cryptocurrency?
Cryptocurrency, or “crypto,” is digital money used for online transactions. It’s like traditional currency (e.g., USD) but dedicated to exchanging digital information through cryptography. People use it to buy goods and services or as an investment.
How Do Cryptocurrencies Work?
Cryptocurrencies operate on decentralized networks using blockchain technology, which is a distributed ledger protected by a network of computers. They usually don’t have a physical form and aren’t issued by any government.
What is Blockchain?
Blockchain is a type of database that securely records transactions across multiple computers. This system makes it hard to alter past records, ensuring transparency and security.
How Many Cryptocurrencies Are There?
Over 6,700 cryptocurrencies are currently traded, with a total market value exceeding $897.3 billion as of January 27, 2021.
Why Cryptocurrency?
People support cryptocurrencies for various reasons:
- Some see them as the money of the future.
- Others appreciate the removal of central banks controlling money supply.
- Many are attracted to the security of blockchain technology.
- Some simply want to profit from rising values.
Is Cryptocurrency a Good Investment?
You can earn significant profits investing in cryptocurrency, but you might also lose money. Prices can be volatile, and hacking incidents pose risks.
How Do I Buy Cryptocurrency?
You can purchase some cryptocurrencies, like Bitcoin, with U.S. dollars, while others may require other cryptocurrencies. To buy them, you need a cryptocurrency wallet and can use exchanges like Coinbase to trade.
Further Learning
If you want to dive deeper into cryptocurrency, watch this free presentation. You’ll discover:
- A huge current opportunity in Bitcoin and other cryptocurrencies.
- How a small investment could potentially grow significantly.
- How to get started as a beginner without technical skills.
- The top 3 cryptocurrencies for potential big returns.
Click the link in the resource box to watch the free presentation!
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