Tech

What the Heck is Cryptocurrency? Bitcoin for Beginners


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Cryptocurrency is the latest trend in the financial/money market. Its main purpose is to secure proper financial communication by converting legible information into an unbreakable code using elements of computer science and theories of mathematics.

Basically, cryptocurrency is an electronic currency produced by the application of cryptography which is the computerized encoding and decoding of information.

Cryptocurrency is a digital currency that doesn’t have any governmental or financial house (Banks) backup but an arrangement of complicated algorithms.

Cryptocurrency is a tender that can be used to sell, purchase and invest, doesn’t go through any oversight by the government, or tracking by any banking system.

An advantage of this new payment system is that it provides a great level of anonymity for the users with high level of security. Transaction fees using this system are also low when compared to the rate at which the conventional currencies charges.

Cryptocurrency comes in different forms, below are the three most important forms of Cryptocurrency

Bitcoin: it is the first and also the standard for other forms of cryptocurrency.

Ethereum: It is a decentralized software platform the allows for smart contracts functionality and Distributed Application (DApps). It was launched in year2015.

Litecoin: It is a peer-to-peer cryptocurrency. It was created in the year 2011 and it is referred to as the second to Bitcoin.


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