Cryptocurrency-guid

A Starter’s Guide to Cryptocurrency

A cryptocurrency is a digital asset or money designed to serve as a medium of exchange that employs
strong cryptography to control the creation of new units, secure financial transactions and validate the
transfer of digital assets. It’s a decentralized, encrypted digital currency that’s transferred between its
users and confirmed in a digital public ledger through a specific process called mining.

Bitcoin is one of the most important and popular cryptocurrencies in the world. Since it’s not operated
by any central bank or government body, you can make and receive payments anonymously. Due to its
anonymous nature, Bitcoin is widely being used to transfer/receive funds all over the world.

You can also use Bitcoin to buy services or products both online and offline, as the majority of major
retailers and businesses have started accepting Bitcoin as a payment. You may be wondering how you
can locate retailers accepting Bitcoin. Well, there’re a number of great apps available on the market,
which you can use to locate retailers who accept Bitcoin as payment. To understand how Bitcoin and
other cryptocurrencies work, you will need to learn a couple of basic concepts. Namely:

Cryptocurrency-guid

Digital Public Ledgers – All verified transactions from the inception of a cryptocurrency’s creation are
kept and stored in a digital public ledger. All the information, including the identity of coin owners is
encrypted, and the system employs powerful cryptographic methods to ensure the authenticity of
record keeping. Bitcoin has a specific name for this public ledger, which is ‘’Transaction Block Chain.’’

Cryptocurrency Mining – Mining is a process of verifying digital transactions and recording them in a
public ledger. To add and verify a transaction, the miner needs to solve an increasingly complex
computational problem. In return miners get a fixed percentage of cryptocurrency they’re mining.
Bitcoin mining is open source, meaning anyone can confirm the transaction and take participation in
mining. However, you’ll need to invest in crypto mining hardware to get started.

Have something to add to this? Please feel free to offer your thoughts in the comments below.