What Is Cryptocurrency? (Simple Explanation)

What Is Cryptocurrency?

Cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of more units of the currency. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Simple Explanation Of Cryptocurrency 

Cryptocurrency is sometimes called Virtual Money, Token, Digital Money or Digital Cash. They are like any Currencies in the World but they act a bit different from them . They are built online and are also stored online in a Digital Wallet . They are not backed by any middle men (banks). They’re backed by their respective networks and are created by Miners.

Every cryptocurrency is a little different, but most of them share these basic characteristics:
  • They’re irreversible. After you send a cryptocurrency and the network has confirmed it, you can’t retrieve it. Cryptocurrencies are one way, no charge backs.
  • They’re anonymous. Anyone can open a wallet, no ID required, and have varying stages of anonymity depending on which token you use.
  • They’re fast and globally accessible. Entries are broadcast across the network immediately and are confirmed in a couple of minutes.
  • They’re built to be very secure. Cryptocurrencies use the latest cryptographic techniques, but they’re in early development.
  • They have a controlled supply limited by the network.
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