What is a cryptocurrency and how does it work?

what is cryptocurrency and how does it works?

A cryptocurrency knows as many names as crypto-currency, crypto, or a coin. A cryptocurrency is a digital currency. This form of currency exists digitally or virtually. It is designed as a source of exchange by using a computer network that does not depend on any central or government authority. The government authority only depends on the local banks (that are physically present in the world). Government can only apply the rules and regulations on these types of banks but not to the digital currency.

So, in this article, we will learn what is cryptocurrency, the types of cryptocurrency and how does cryptocurrency work?

What is cryptocurrency?

As we understand the meaning of cryptocurrency in the upper part, So we can say that cryptocurrency is a digital payment system that does not depend on the banks to verify the transaction. It is a peer-to-peer system which means all the systems are linked with each other by equal permissions, So, anyone can send and receive payments from anywhere. Cryptocurrency payments exist totally as digital entries to the online database that describe the specific transactions. Cryptocurrency is stored in digital wallets.

How does cryptocurrency work?

When anyone sends a cryptocurrency then it’s received by its name because it’s using encryption to verify the complete details about the sender. Encryption is a technique that is used to provide security and safety during transactions.

The first cryptocurrency was Bitcoin, which was founded in 2009 and today it’s the most worthy and we’ll know cryptocurrency all around the world.

Types of cryptocurrency:

There are many types of cryptocurrencies that exist nowadays. The most important Cryptocurrency types are:

1) Bitcoin (Crypto:: BTC)
2) Ethereum (Crypto:: ETH)
3) Tether (Crypto:: USDT)
4) Binance Coin (Crypto:: BNB)
5) USD Coin (Crypto:: USDC)

Bitcoin (Crypto:: BTC)

Founded in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.

Ethereum (Crypto:: ETH)

Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

Tether (Crypto:: USDT)

Tether is a cryptocurrency that is hosted on the Ethereum and Bitcoin blockchains, among others. Its tokens are issued by the Hong Kong company Tether Limited, which in turn is controlled by the owners of Bitfinex.

Binance coin (Crypto:: BNB)

Binance is a cryptocurrency exchange that is the largest exchange in the world in terms of the daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high-frequency trading software.


USD coin (Crypto:: USDC)

USD Coin is a digital stable coin that is pegged to the United States dollar. USD Coin is managed by a consortium called Centre, which was founded by Circle and includes members from the cryptocurrency exchange Coinbase and Bitcoin mining company Bitmain, an investor in Circle.

Here is the little details about cryptocurrency and how does it works?


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