What is Cryptocurrency?

Cryptocurrency is similar to a digital form of money. You may use it to pay your friends' half of the bar tab, purchase that new pair of socks you've been admiring, or book flights and accommodations for your next vacation. Cryptocurrency can be sent to friends and family all over the world because it is digital.

Just like PayPal or bank transfers, right? Well, not really. It's way more interesting!

Typically organizations possess internet payment channels, like Stripe or Paddle. They retain your money for you, and when you want to spend it, you must ask them to transfer it on your behalf. There is no such thing as a cryptocurrency organization.

By using free software, you, your friends, and thousands of others may function as your own banks. Your computer links to other computers, allowing you to communicate without the use of a middleman.

You do not need to register for a website with an email address and password to use cryptocurrencies. You can quickly send and receive messages by downloading a selection of applications to your smartphone.

Why Do They Call It Cryptocurrency?

The name cryptocurrency is a combination of cryptography and currency. With cryptography, we use advanced math to secure our funds, making sure that nobody else can spend them.

There's no need to understand all this – applications you use will do all the heavy lifting. You won't even know what's going on under the hood.

If you're interested in that kind of thing, though, we've got a few articles for you if you continue this section.