What is Cryptocurrency

Cryptocurrency is a digital currency secured by cryptography, operated on a decenteralized system. It is not controlled by a bank and it only exists in digital form. The popular cryptocurrencies to use is Bitcoin, Litecoin, and Ethereum .

If you want to know more about these Cryptocurrencies here are the links:

https://bitcoin.org/en/

https://litecoin.org/

https://ethereumclassic.org/

 

How does Cyptocurrency Work?

Cryptocurrencies can be used to make transactions, make investments, and record ownership of digital access. They operate on a decenteralized network, so they are not controlled by a bank. Their network is built using blockchain. It is a ledger that is distributed across a network of computers. Each transaction is a block and linked to previoius blocks. All blocks are linked so if you try to alter a transaction you will have to change all blocks.

What is the difference between Bitcoin and Ethereum

The difference between the two is that Bitcoin was made as a digital currency while ethereum was created as a platform with a borad variety of applicaations. Ethereum enabled developers to build applications and smart contracts.

While Bitcoin's main porpose was to use blockchain tech for transactions, the etherum network was created to build, and expand on the idea. The goal of ethereum was to decentralize currency and almost everything on the internent.

What is blockchain technology

Blockchain technology is a digital ledger that records transactions across networks. Its a public ledger that is very hard to mess with because every transaction is linked to a previous block. This ensures that the data provides a record that has not been tampered with.

How is a cryptocurrency transaction verified?

A transaction is verified by a process on a blockchain network that involves miners or validators. Transactions are broadcasted to a network and verified for authenticity, grouped into a block and gets added to a blockchain.

What are the risks in investing in cryptocurrency?

The risks in investing in cryptocurrency is lack of regulation, scams and cyberattacks. Also investors could lose thier entire investment because of market, platform faliures or hacking incidents.

 

How do you store Cryptocurrencies safely?

The way to store cyrptocurrency is by using a cold wallet, which are offline devices that store private keys. You can also use paper wallets, which  you write the keys on a piece of paper and store it in a safe place. Stronger pass words and two-factor authenticators can be useful to keep the currency safe.

What is a cypto wallet?

A crypto wallet is a digital wallet, often a software or hardware that stores and manages your currency. Its an online bank for your digital assets that allows you to send, recieve, and spend. It is also crucial for keeping your private keys safe.

Pros and Cons on using cyrptocurrency

Pros:

Fast Transactions

Cheaper Fees

Accessiblility 

Security

Asset Growth

 

Cons:

Security Risks

Limited Acceptance 

Enviromental Impact

Regulatory Uncertainy