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. This article strives to answer eight frequently asked questions about 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.
Cryptocurrency was initially conceived as a way of as a virtual currency and alternative form of payment versus traditional banking.
All cryptocurrency transactions are recorded on a blockchain public ledger. These ledgers are known as decentralized networks.
Every transaction includes three critical pieces of information: 1. Input 2. Output 3. Amount.
Each wallet consists of two random strings of characters. The first string acts like a username to signify your account on the blockchain, while the second is a private key or password.