Cryptocurrency is a type of digital assets that does not have a tangible form, where the accounting of internal units of payment is provided by a decentralized payment system that has no internal or external administrator. The first cryptocurrency is considered to be Bitcoin, and all subsequent altcoins, with each having its own name (Ethereum, XRP, Tether, Bitcoin Cash, Litecoin, EOS, Binance Coin).
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Each cryptocurrency has its own price (exchange rate), which is formed according to market supply and demand.
Cryptocurrencies use blockchain technology to achieve decentralization, transparency and immutability. The most important feature of cryptocurrencies is that no one can influence the transactions of the participants of the payment system.
Cryptocurrencies can be transferred directly between two parties without intermediaries using private and public keys. Such transfers can be made with minimal fees, allowing users to avoid the high fees charged by traditional financial institutions.
What cryptocurrencies are there?
Bitcoin is the oldest and best-known cryptocurrency, but there are hundreds of others. Some cryptocurrencies, such as Litecoin and Bitcoin Cash, share characteristics of Bitcoin but explore new ways of processing transactions. Others offer a wider range of features. For example, Ethereum can be used to run applications and create contracts.
Why is cryptocurrency interesting?
Cryptocurrency could be the fastest, easiest, cheapest, safest and most versatile way the world has ever seen to exchange value.
And if that’s not enough, cryptocurrency also provides equality of opportunity, no matter where you were born or where you live. As long as you have a smartphone or other device connected to the Internet, you have the same access to cryptocurrency as everyone else.
Where do you store cryptocurrency?
Usually it is stored on cold/hot wallets, which are accessed via different devices (computers, tablets, phones, USB, hardware wallets).
Cryptocurrency Q&A
Who runs it? A network of open source computers.
How does cryptocurrency hold its value? Primarily based on supply and demand.
How is it secured? With a network of computers that verify every transaction – anyone connected to the Internet can participate.
Are there physical accounts or coins? No, only digital ones.
Can I buy something with cryptocurrency? Yes, but only in countries where it is allowed and accepted for payment.
