How Cryptocurrency Works for Dummies?

Question

I am new to the term of cryptocurrency and have a few questions concerning it. How does cryptocurrency work for dummies or beginners?

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Moris Johnsons 3 months 1 Answer 52 views 0

Answer ( 1 )

  1. Cryptocurrencies are the digital money that records each transaction in a public ledger called Blockchain. It uses cryptography to verify and secure its transactions.

    The public ledger is constantly checked automatically to stay up to date. Since this ledger is public, it can be checked by anyone.

    When a new coin comes to the market, “white paper” is usually released. It is basically like a sales pitch.

    Cryptocurrencies are independent and free from government or financial intervention.

    It is vulnerable to safety risks due to hackers, as the transactions can be publicly visible.

    These currencies are kept in wallets for storage, trading, and investing.

    To trade in cryptocurrencies, you need to have a platform for cryptocurrency exchanges. Some of the exchanges like Coinbase offers storage of currency facility as well. However, you can also buy several other crypto wallets to store your currencies.

    The investment in cryptocurrency might be risky just like any other investment. To avoid risks, you need to read the market and the currency you wish to invest in thoroughly, before making a move for investment.

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