What is Cryptocurrency and How does it work?
1. Cryptocurrency is a digital or virtual currency that uses cryptography for security.
2. Cryptocurrency operates independently of a central bank or government.
3. Transactions using cryptocurrency are recorded on a public digital ledger called a blockchain.
4. Cryptocurrency uses decentralized systems known as blockchain technology, which allows for secure and transparent transactions.
5. The most popular cryptocurrency is Bitcoin, but there are thousands of other cryptocurrencies in existence, including Ethereum, Litecoin, and Ripple.
6. Cryptocurrency can be bought and sold on various online platforms known as cryptocurrency exchanges.
7. Cryptocurrency can be stored in a digital wallet, which is a software program that stores the user's public and private keys.
8. Transactions using cryptocurrency are verified by a network of computers, known as nodes, through a process called mining.
9. Cryptocurrency has the potential to disrupt traditional financial systems and has been praised for its potential to increase financial inclusion and reduce transaction fees.
10. However, cryptocurrency also has its downsides, such as high volatility, lack of regulation and the potential for illegal activities such as money laundering.