What is cryptocurrency?
Cryptocurrency is a decentralized digital payment system that operates independently of banks. It is a peer-to-peer payment system that enables anyone, regardless of geographic location, to make and receive money. Cryptocurrency payments exist only as digital entries in an electronic database that describe specific transactions rather than actual money that can be transferred and exchanged in the real world. When bitcoins are transferred, the transactions are recorded in a public ledger, and a digital wallet is used to store the cryptocurrency.
Cryptocurrency gets its name from its reliance on encryption to verify transactions. This requires a complex code to store and transfer bitcoin data between wallets and ledgers of the currency. The purpose of encryption is to provide security and privacy.
