A cryptocurrency is an electronic asset that uses advanced cryptography to confirm transactions and safeguard against hacking. Bitcoin is the most well-known cryptocurrency, founded in 2009. Cryptocurrencies are traded for profit by speculators, who can boost prices by making predictions regarding the future of their value. Transactions are recorded in a ledger that is referred to as blockchain, which makes it difficult for hackers. Cryptocurrency wallets are secure by passwords and two-factor authentication.
Investors purchase and sell cryptocurrency on exchanges, companies that facilitate the purchase and selling of cryptocurrency at market prices. These exchanges usually charge users fees for deposits, withdrawals, and trading. Fees vary depending on the payment method and platform. Users could lose access to their cryptocurrency investments, if they forget their password or misplace their private keys. They also face the risk of government crackdowns that could make it impossible to use or sell cryptocurrencies.
Follow