What is Cryptocurrency and how does it work?
Cryptocurrency is typically a form of decentralized digital currency designed for use on the internet. Bitcoin, which launched in 2009, was the first cryptocurrency and remains by far the largest, most influential, and best known. In the last decade, Bitcoin and other cryptocurrencies like Ethereum have become digital alternatives to money issued by governments.

What are some popular cryptocurrencies?
- The most popular cryptocurrencies are Bitcoin, Ethereum, and Litecoin. Other well-known cryptocurrencies include Monero, Ripple, and ZCash. Some are similar to Bitcoin. Others are based on different technologies or have new features that allow them to do more than transfer value. There are currently thousands of cryptocurrencies. with many of them being either scams, like for example Bitcoinnect or Onecoin while others like Dogecoin were started as a joke, but became extremely popular.
What makes cryptocurrency unique?
Crypto allows value to be transferred online without resorting to an intermediary such as a bank or payment processor, allowing value to be transferred around the world, almost instantly, 24/7, with minimal fees.
Cryptocurrencies are generally not issued or controlled by any government or other central authority. They are managed by peer-to-peer computer networks running free and open-source software. Usually, anyone who wants to participate is able to do so.
Cryptocurrency is secure because all transactions are verified by a technology called a blockchain. A cryptocurrency blockchain is similar to a bank’s balance sheet or ledger. Each currency has its own blockchain, which is a continuous and constantly rechecked record of every transaction ever made with that currency.
Unlike a bank’s ledger, a crypto blockchain is distributed among participants across the digital currency network. No company, country, or third party has control; and anyone can participate. A blockchain is a revolutionary technology recently made possible through decades of computer and mathematical innovations.
How do I get some cryptocurrency?
There are two ways to get cryptocurrency.
One is to “mine” it ourselves, which is increasingly difficult nowadays and, in the case of Bitcoin, requires specialized computers called ASIC miners. It’s still possible to mine Etherium as well as less popular cryptocurrencies with ordinary home hardware.
The other way to get cryptocurrency is to buy it. In the most general sense, the options here boil down to using the services of a trusted intermediary, such as Finansiv, or buying directly from another person (a so-called peer-to-peer transaction).
What do I need to know to trade cryptocurrency?
A good financial culture certainly comes first. This includes basic knowledge of financial instruments and foreign exchange markets. For starters, it’s a good idea to first know the basic mechanisms of cryptocurrencies, which we covered in this article. It is also good to know how financial markets work. Once you have gained enough knowledge and are confident in it, you can try to invest your own funds. Keep in mind that a huge percentage of retail investors lose money. If you really want to have a real chance to make money from cryptocurrency trading, focus on improving your knowledge. In other words, focus on a proper understanding of the technology itself. Doing so, you can distinguish projects that have some fundamental value, such as Bitcoin or Ethereum, from obvious pyramid schemes, such as OneCoin or Bitconnect.
Crypto news
- Tether treasury receives two $50M USDT lump sums from BitfinexCointelegraph.com News - 8 hours agoTwo transactions showed lump sums of $50 million in USDT transferred from Bitfinex to the…
- BTC price knocks on $28.5K as trader says Bitcoin 'reeks of disbelief'Cointelegraph.com News - 8 hours agoBitcoin preserves its snap October gains, but BTC price analysis reveals reasons for staying level-headed…
- VanEck Ethereum Strategy ETF set for CBOE listingCointelegraph.com News - 8 hours agoFollowing the U.S. SEC’s approval of spot Ethereum exchange-traded funds, VanEck has launched its Ethereum…
- Bitfarms increases mining pace, generates 411 BTC in SeptemberCointelegraph.com News - 9 hours agoBitfarms, one of the largest Bitcoin miners in the world, believes that many of its…
- AI a powerful tool for devs to change gaming, says former Google gaming headCointelegraph.com News - 9 hours agoRyan Wyatt deciphers the the possibilities for AI to help gamers and game developers achieve.…
- Optimism (OP) Climbs 6% A Day As Crypto Market Rebounds, What’s Next?NewsBTC - 8 hours agoOptimism (OP) has posted notable gains today, October 2, trading at $1.45, with a 5%…
- Bitcoin News: Analysts Reveal Forecasts For October As BTC Price Pushes Past $28,000NewsBTC - 9 hours agoAnalysts have unveiled their forecasts for October as the Bitcoin (BTC) price has pushed past…
- Expert Predicts Staggering 760% Surge For XRP Price: Here’s The RoadmapNewsBTC - 10 hours agoCrypto analyst Egrag has unveiled a new analysis predicting a significant surge in the price…
- Crypto Era Looms: BIS Innovations Chief Calls On Central Banks To PrepareNewsBTC - 11 hours agoCentral banks worldwide must be proactive in adapting to the fast-evolving crypto landscape, urged Cecilia…
- Solana Rebound Potential: Is $30 The Next Target?NewsBTC - 12 hours agoSolana (SOL) has been on an impressive winning streak, with its price chart resembling the…
Main properties and advantages of cryptocurrency
What is cryptocurrency?
Cryptocurrency is a decentralized digital currency based on blockchain technology and cryptography.
Transferability
Crypto makes transactions with people on the other side of the planet as easy as paying with cash at your local grocery store.
Privacy
When paying with cryptocurrency, you don’t need to provide any unnecessary personal information to the merchant. This means that your financial information is protected from sharing with third parties such as banks, payment services, advertisers, and credit rating agencies. And since no sensitive information should be sent over the internet, there is very little risk that your financial information will be compromised or your identity stolen.
Immutability
Almost all cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, are secured using a technology called blockchain, which is constantly updated and verified by a huge amount of computing power.
Portability
Since your cryptocurrency holdings are not tied to any financial institution or government, they are available to you no matter where in the world you are or what happens to any of the main intermediaries in the system. Truly global control of your funds.
Utility and irreversibility
Unlike a credit card payment, cryptocurrency payments cannot be canceled. For traders, this greatly reduces the likelihood of being defrauded. For customers, it has the potential to make trading cheaper by eliminating one of the main arguments made by credit card companies for their high processing fees.
Security
The network powering Bitcoin has never been hacked. And the fundamental ideas behind cryptocurrencies contribute to their security: The systems are permissionless and the core software is open-source, which means that countless computer scientists and cryptographers have been able to examine all aspects of networks and their security.
Ready to start building your portfolio?
Unlike the stock market, crypto markets never close.
You can buy and sell cryptocurrency at any time — it’s completely up to you.