What is cryptocurrency?

What is cryptocurrency

What is cryptocurrency and you ask me? The cryptocurrency is a digital currency. Each year, that money is gaining popularity around the world.

Their main advantage is that they can not be falsified, unlike ordinary bills. The cryptocurrency can be stored perfectly in an electronic wallet, as well as transferred to other wallets, but only within the payment system. That money appeared relatively recently, just a few years ago, and was used for the first time in a payment system called bitcoin.

This is a completely new, unique currency that has no analogues in the world, which is a public key cryptographic system.

Characteristics and advantages

On the one hand, it may seem that the cryptocurrency is an ordinary electronic money, to which we have become accustomed. In fact, if you dig deeper, it turns out that there is practically nothing in common between them.

To begin with, this is an absolutely decentralized system. Each client’s cryptocurrency portfolio is a small bank that no outsider can manage. As every year there are more and more customers, and the system is spreading all over the world, it turns out that millions of computers with wallets installed in them represent a powerful financial network. This system works without interruptions throughout the day and night, and does not need to be controlled, as it is completely independent. This happens due to a special algorithm created by a person under the pseudonym Satosi Nakamoto, which allowed to automate the process, making the system more open and eliminating the presence of unauthorized persons.

To compare this currency with any other, both real and virtual, is simply impossible. If for any other currency there is a special table where you can see how much it costs and what the commission is, then the bitcoins do not have a commission, and their cost is determined by the momentary demand, so the price calculator does not work here.

The cryptocurrency is not linked to any other world currency. Another important advantage of it is complete anonymity under any conditions. Other types of payment systems are losing a lot with cryptocurrencies, because they are not fundamentally new money. In addition, there are no powerful banking systems that provide work, since in this case this is achieved through the synergistic interaction of the cryptocurrency users’ computers. That is, all customers are connected by themselves to a single network.

Types of cryptocurrency

The cryptocurrency list is growing every year. Of course, Bitcoins are still the most popular, but now Litecoin, Ethereum and others join them. They all work roughly on the same principle. A few years ago, the first stock exchange was created for the sale and purchase of cryptocurrencies. Now there are several exchanges of this type, and their number continues to grow.

Therefore, it is recommended to carry out mining with the help of special equipment, since not all common computers can support such loads.

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