Basics of Cryptocurrency: Understanding the Fundamentals of Digital Money
The word "cryptocurrency" has gained widespread usage in the past few years to describe a specific type of digital or virtual currency that employs encryption to ensure its users' privacy and to regulate how and when new units of currency are issued. Understanding cryptocurrency's rudimentary features and principles is crucial for getting started. The purpose of this article is to introduce the reader to the fundamentals of cryptocurrency. 1. Cryptocurrencies are decentralized: They do not rely on a centralized authority like governments or banks to function, but rather on distributed ledgers called blockchains. The blockchain is a distributed ledger that keeps track of transactions and validates their accuracy across a network of computers in a way that is both public and unchangeable. Decentralized Exchange Cryptocurrency allow for peer-to-peer transactions and more financial independence because they bypass centralized institutions like banks. 2. Cryptography is