Are you also overwhelmed by all of the trending news and peer pressure to know what cryptocurrency is? Then you don’t have to worry because I’ve simplified the definition of cryptocurrency and other fundamental concepts associated with it.
What is cryptocurrency?
Cryptocurrency is a digital currency in the same way that we have paper currency in our hands. However, cryptocurrency is a digital currency that we have but cannot touch.
It is used to make online purchases of goods and services. They are also known as tokens. Many businesses have also launched their own digital currency.
To obtain cryptocurrency, you must first exchange real money and then use it to purchase goods and services online.
What is blockchain?
Blockchain is the technology that underpins cryptocurrency. It is a technology that manages transactions across multiple computers.
It enables people to communicate with one another in a secure manner, conduct business, and exchange information without the need for a third party to intervene.
It is similar to a backbone or a connection that connects many computers in order to exchange, buy, and sell digital currency. It’s cool to have cryptocurrency, but it can also be dangerous.
Is investing in cryptocurrency a good idea?
This is a contentious issue. Because the value of cryptocurrency fluctuates between high and low. And in order for you to profit, someone must pay more money for the currency. Digital currency has no real cash flow.
In the world, there are approximately 10,000 different types of cryptocurrencies.
Disadvantage.
Cryptocurrency can also have a negative outcome. It’s like an open invitation to illegal transactions like tax evasion and other heinous crimes. So, while cryptocurrencues are fantastic, they also have this disadvantage.
