Around this hype, you may have heard or read the words bitcoin, cashless, ethereum and ripple and blockchain. But to fully understand why cryptocurrency is “trending” in the financial world, you need to get down to the basics.
In this video, we’ll explain to you what cryptocurrency is and how it works.
A cryptocurrency is a digital currency. It is designed to function as a medium of exchange and has a network that is distributed across a large number of computers. This network is built on blockchain technology.
Crypto typically does not exist in physical form (like paper money) and is not issued or backed by a central authority. This online, decentralised structure allows it to operate outside the regulation of governments and central banks. Because it’s not regulated, cryptocurrencies are easier to transfer and don’t need a middleman such as banks or a credit card company for transactions.
What is cryptocurrency?
There are several types of cryptocurrencies that are being traded around the world. Bitcoin, which you might have already heard of, is the most popular digital currency and makes up more than half of the total crypto market. There are also other crypto currencies that are being traded, including ripple and ethereum.
Cryptocurrency might seem like a lucrative investment, but it is very important to be well informed before putting your money into this digital asset. Transactions using cryptocurrencies can also be very tricky, and investing without the proper knowledge could lead to huge losses.
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