What is a cryptocurrency and how does it work?
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin and other cryptocurrencies are created through a process called “mining.” Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain public ledger.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Bitcoin, for example, can be used to purchase items from a variety of online retailers.
What are the top cryptocurrencies as of this time?
Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Dash, IOTA, Monero, Cardano, NEM
Where do you purchase?
Bitcoin can be purchased on a variety of online exchanges such as Coinbase, Kraken, Bitstamp, and Gemini.
As of January 2018, the market capitalization of all cryptocurrencies is $700 billion. Bitcoin is the largest cryptocurrency, with a market capitalization of $273 billion as of January 2018.