At its core, cryptocurrency is typically decentralized digital money designed to be used over the Internet. Bitcoin, which launched in 2009, was the first cryptocurrency, and it remains by far the biggest, most influential and best-known. In the decade since Bitcoin and other cryptocurrencies like Ethereum have grown as digital alternatives to money issued by governments.
Over 7$ trillion worth of Bitcoin has been transferred since 2009
The most popular cryptocurrencies, by market capitalization, are Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Other well-known cryptocurrencies include Tezos, EOS and ZCash. Some are similar to Bitcoin. Others are based on different technologies, or have new features that allow them to do more than transfer value.
Crypto makes it possible to transfer value online without the need for a middleman like a bank or payment processor, allowing value to transfer globally, near instantly, 24/7, for low fees.
Cryptocurrencies are usually not issued or controlled by any government or other central authority. They’re managed by peer-to-peer networks of computers running free, open-source software. Generally, anyone who wants to participate is able to.
If a bank or government isn’t involved, how is crypto secure? It’s secure because all transactions are vetted by a technology called a blockchain. A cryptocurrency blockchain is similar to a bank’s balance sheet or ledger. Each currency has its own blockchain, which is an ongoing, constantly re-verified record of every single transaction ever made using that currency.
Unlike a bank’s ledger, a crypto blockchain is distributed across participants of the digital currency’s entire network. No company, country, or third party is in control of it; and anyone can participate. A blockchain is a breakthrough technology only recently made possible through decades of computer science and mathematical innovations.
Most importantly, cryptocurrencies allow individuals to take complete control over their assets.
When paying with cryptocurrency, you don’t need to provide unnecessary personal information to the merchant. Which means your financial information is protected from being shared with third parties like banks, payment services, advertisers, and credit-rating agencies. And because no sensitive information needs to be sent over the Internet, there is very little risk of your financial information being compromised, or your identity being stolen.
Almost all cryptocurrencies, including Bitcoin, Ethereum, Tezos, and Bitcoin Cash, are secured using technology called a blockchain, which is constantly checked and verified by a huge amount of computing power.
Why invest in cryptocurrency?
Online exchanges like EUCX have made trading, receiving and sending cryptocurrencies easy, secure, and rewarding. It only takes a few minutes to create a secure account. You can handle as little (or as much) cryptocurrency as you want. Many digital currencies, including BTC or ETH, offer holders rewards just for having them. Unlike stocks or bonds, you can easily transfer your cryptocurrency to anyone else or use it to pay for goods and services. Millions of people hold bitcoin and other digital currencies as part of their investment portfolios. Cryptocurrencies can be used to buy goods or services or held as part of an investment strategy, but they can’t be manipulated by any central authority, simply because there isn’t one. No matter what happens to a government, your cryptocurrency will remain secure.
Based on everything, we can confidently say that cryptocurrency is the future of finance.
If you want to know more about how cryptocurrency works, you can easily find the rest of the information in open sources on the Internet.