Cryptocurrency is a digital asset that works as a medium of exchange. The first cryptocurrency was Bitcoin. It is not controlled by any central authority. It has now become a global phenomenon. It uses cryptographic functions to conduct financial transactions that are instant and done in a couple of minutes. Cryptocurrency is virtual or digital money used for exchange.
They are the new form of money that runs on a new monetary system. It is permissionless. It is software which can be downloaded by anyone for free. After the installation, you can receive and send cryptocurrencies. The software works on the algorithm. Bitcoin, Ethereun, Ripple, Litecoin, Monero, are some of the examples of Crypto.
How does it work?
Transactions are made between peers using software called,” Cryptocurrency wallets. It takes a minute to transfer Bitcoin to a wallet. The transactions are recorded once on a digital public ledger called blockchain, and all the process is secured by cryptography. It works more like a bank credit and debit card. It is decentralized, means that it is not controlled by the central government but by users and math.
Cryptocurrency miners are the people who are running software and hardware and aims to confirm the transactions to the digital ledger. Cryptocurrency is a reward is given, when solving cryptographic puzzles by software to add transactions to the ledger. It is a process that creates new coins. They serve as record keepers.
A blockchain is a master ledger that records and stores all the transactions and activity. A transaction is not finalized until it is added to the blockchain. Once, the transaction is finalized it is impossible to make it irreversible. Nobody can reverse it.
Bitcoin can be converted into cash by selling it in the cryptocurrency exchange, such as Coinbase or Kraken. It is the easiest way of transfer your currency to cash. Cryptocurrencies uses the principle of decentralization. You can go for the detailing with https://crypto-wikipedia.com/