$BTC $ETH $BNB Cryptocurrency, or crypto, is a digital currency that uses a decentralized system to record transactions and manage the issuance of new units. It's not controlled by a central authority like a government or bank, and it's not backed by real assets or securities.
Here are some things to know about cryptocurrency:
How it works
Cryptocurrencies are traded between consenting parties using a digital ledger, which is a computerized database that uses cryptography to secure transactions.
How it's stored
Cryptocurrencies are stored in digital wallets, unlike traditional currency, which can be stored in a bank or financial institution.
How it's verified
Some cryptocurrencies use a proof-of-stake verification method, which is more efficient than proof of work because it doesn't require energy-intensive equation solving.
How it's valued
Cryptocurrencies have become their own asset class and are traded like other financial assets.
How it's regulated
Cryptocurrencies have varying legal treatments in different jurisdictions, and they are sometimes classified as commodities or securities.
How it's used
Cryptocurrencies can be used as a medium of exchange, and some people use them as a hedge against inflation.
How it's protected
Cryptocurrencies use cryptography to prevent counterfeiting and fraudulent transactions.
How it's accessed
Access to the ledger is shared among authorized users, and information is transparent, immediate, and immutable.
Bitcoin was the first cryptocurrency, released in 2009, and it remains the most popular and valuable one