What is cryptocurrency?
Cryptocurrency is akin to digital cash that operates without a central authority overseeing it. It functions on blockchain technology. While you may be familiar with popular ones like Bitcoin and Ethereum, there are actually more than 9,000 different cryptocurrencies available.
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Instead of physical money, these transactions exist as digital entries in an online database that details specific dealings. When you send cryptocurrency, the transaction is logged in a public ledger, and you store it in digital wallets.
The term “cryptocurrency” derives from using encryption to verify transactions. This involves sophisticated coding to safeguard data as it moves between wallets and public ledgers. The primary objective is to ensure security.