Cryptocurrencies like Bitcoin, Ethereum, and dozens of lesser-known digital currencies frequently appear in the news, often following wild price spikes, and sometimes to cover the revolutionary blockchain technology they are built upon.
But these news reports usually do a poor job of explaining what cryptocurrency is if they attempt to do so at all. You can try searching the internet to learn more about cryptocurrencies.
Still, it can be hard to find unbiased education among the banter of promoters and investors who stand to benefit if you choose to invest in the projects they’re backing.
This story strives to answer some frequently asked questions about cryptocurrency in the most unbiased manner possible. We will follow that up with questions you should ask yourself or a financial professional before investing in digital assets.
1. What Is Cryptocurrency?
Cryptocurrency is any digital store of value that one can exchange for goods and services. Bitcoin is the oldest and most well-known example of a digital currency,
2. What Is the Purpose of Cryptocurrency?
Cryptocurrency was initially conceived as a way of making international trade easier. Consumers in developing countries often lack consistent access to conventional fiat currency options such as U.S. Dollars or European Euros.
2. What Is the Purpose of Cryptocurrency?
Cryptocurrency was initially conceived as a way of making international trade easier. Consumers in developing countries often lack consistent access to conventional fiat currency options such as U.S. Dollars or European Euros.
3. What Is Blockchain Technology?
All cryptocurrency transactions are recorded on a blockchain public ledger. These ledgers are known as decentralized networks. You can think of a blockchain similar to your account history on an online bank account. Transaction information gets stored in “blocks” that can be “chained” together to create a system with infinite memory, where the name originates