What is a cryptocurrency and how does it work?
A cryptocurrency is a digital asset, which uses cryptography to secure transactions and control the creation of additional units of the currency. Any two willing parties can exchange money for a new cryptocurrency. The most popular cryptocurrencies are Bitcoin, Litecoin, and Ethereum. Cryptocurrencies that are relatively new are Dash, Bhero , Monero, Dogecoin, et al. Here’s a bit more about how they work. What are Cryptocurrencies? What is cryptocurrency? Cryptocurrencies are defined by the US Financial Crimes Enforcement Network (FinCEN) as a medium of exchange that is “not issued or backed by a central bank.” Some cryptocurrencies are similar to payment-focused credit or debit cards, while others are more akin to e-mail-based money. There are generally two types of cryptocurrencies: Cryptocurrencies that are decentralized, such as Bitcoin, Monero, etc. Cryptocurrencies that are centralized. To put it more simply: Bitcoin and other decentralized cryptocurrencies are essentially based...