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What is a cryptocurrency and how does it work? Cryptocurrency - meaning and definition Cryptocurrency, also known as cryptocurrencies or cryptocurrencies, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies do not have central issuance or regulatory authority and instead use a decentralized system to record transactions and issue new units. What is Cryptocurrency? Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that allows anyone, anywhere to send and receive payments. Rather than being physical money carried and exchanged in the real world, cryptocurrency payments exist purely as digital entries to online databases describing a particular transaction. When you transfer cryptocurrency funds, the transaction is recorded on a public ledger. Cryptocurrency is stored in digital wallets.???? ?? Cryptocurrency got its name because it uses cryptography to verify transactions. This means that advanced coding is involved in storing and transferring cryptocurrency data between wallets and public ledgers. The purpose of cryptography is to provide security and safety. Join Binance The first cryptocurrency was founded in 2009 and today is the best known Bitcoin. Much of the interest in cryptocurrencies comes from speculators trading them for profit, which sometimes drives their prices soaring. How do cryptocurrencies work? Cryptocurrencies run on a distributed public ledger called a blockchain, which is a record of all transactions updated and held by the holders of the currency. Units of cryptocurrency are created through a process called mining, which uses the power of computers to solve complex mathematical problems that create coins. Users can also buy currencies from brokers and then store and spend them using crypto wallets. If you own cryptocurrency, you don't own anything tangible. What you possess is the key that allows you to move a record or unit of measure from one person to another without a trusted third party. Although Bitcoin has been around since 2009, applications of cryptocurrency and blockchain technology are still emerging in financial terms and more uses are expected in the future. Trades including bonds, stocks and other financial assets could eventually be traded using this technology. Join Binance???? ?? Cryptocurrency example There are thousands of cryptocurrencies. Some of the best known are: Bitcoin: Founded in 2009, Bitcoin was the first cryptocurrency and is still the most traded. The currency was developed by Satoshi Nakamoto and is widely regarded as a pseudonym for individuals or groups whose exact identities are unknown. Ethereum: Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency called Ether (ETH) or Ethereum. It is the second most popular cryptocurrency after Bitcoin.???? ?? Litecoin: Although this currency is most similar to Bitcoin, it has moved faster to develop new innovations, including faster payments and processes that allow for more transactions.