Before getting into the real meat of cryptocurrency, it’s important to first understand what this digital financial trend is all about. You may be asking, “What is it? How does it work? What impact does it have?” These questions and more will be answered in the next sections.

Understanding Cryptocurrency: What is it?

Cryptocurrency, simply put, is a type of digital or virtual currency that uses cryptography for security. It operates independently of a central bank and it is created and stored electronically on blockchain technology. To put it simply, cryptocurrency is a form of digital currency that is designed to work as a medium of exchange, using strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of digital assets. Unlike traditional financial systems, cryptocurrencies such as Bitcoin provide users with the opportunity to have complete control over their money. read more