What is Cryptocurrency?


Ashton Dale , Writer

Cryptocurrency is a type of digital asset based on a network that is spread across a large number of computers. This disperse structure allows them to exist outside the control of governments and central authorities.


Although it may be hard to understand this system it is clear that there are some advantages and disadvantages. The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure. The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and are now commonly used in criminal activities.


Cryptocurrencies can be mined or purchased from cryptocurrency exchanges. Not all browsing sites allow purchases using cryptocurrencies. In fact, cryptocurrencies, even popular ones like Bitcoin and others such as dogecoin, are hardly used for retail transactions. However, the increasing value of cryptocurrencies has made them popular and known worldwide as trading instruments. To an extent, they are also used for cross-border transfers.


Hopefully, this article helped you understand cryptocurrency more and maybe you’ll even invest in it.