What is Cryptocurrency?

Cryptocurrencies are decentralized forms of currency that don’t have central issuing or regulating authority. It exists in digital form, and cannot be used in a physical form at all, and hence can be hard for a country to regulate and control. It is a peer to peer system which allows someone to send and receive payments, in the form of crypto, which can be sold for actual currencies ($/£).

Examples of the more famous cryptocurrencies are Bitcoin, Ethereum, SPOT etc.

Different Cryptocurrencies have their own market, for example, the price of a single Bitcoin fluctuates like a stock market, and can be compared in price to Dollars/Alternative currencies. Another thing important about crypto is that users are enabled to have a small decimal share of a whole crypto, i.e. you could own 0.002 Bitcoin or 0.000021 Ethereum etc. This is because there is only a certain amount of a specific cryptocurrency in circulation, which means that you can’t earn crypto from thin air, and instead needs to be received from another person. For example, the limit of the number of whole Bitcoins in the world is 21 million, with up to 18.5 million in circulation, nearing its limit.

As it is a digital currency, Crypto is stored in online wallets, which can appear in an online form (hot wallets) or can be stored in an offline, physical device such as a USB stick or Hard Drive (cold wallets). Cryptocurrencies themselves are heavily encrypted and secure, away from hackers, when stored safely.

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