What is Cryptocurrency?
Cryptocurrency, commonly referred to as cryptocurrency, is digital money managed through a public ledger system called blockchain that enables direct transactions between people without needing a central authority for approval. Bitcoin has become the most well-known crypto, though many other cryptocurrencies have seen significant interest since then. People often invest in crypto as an alternative or hedge against inflation when considering investing in traditional currencies.
Cryptos are digital assets traded on decentralized computer networks and stored in virtual wallets, known for using cryptography to secure transactions and prevent counterfeiting. There are thousands of different cryptocurrencies but all share similar core technologies.
Cryptocurrencies can be highly unpredictable, with prices changing suddenly over short periods of time. Their volatility makes them unsuitable for everyday payments; instead they’re used as speculation investments or for short-term speculations. Some cryptocurrencies may even be backed by physical assets like gold or the US dollar to help maintain their value and ensure they maintain value over time.