Cryptocurrency is the term used to describe virtual currency that exists only as a digital representation of value. In other words, it is not printed or minted, and there is no physical medium of exchange.
As such, it is completely electronic, and can be stored and transferred digitally. It is not issued by any government, central bank, or financial institution, and there is no physical currency involved. The only thing that backs it is the faith of its users in its value. This is why it is called a virtual currency.
How does it work?
Cryptocurrency is created by using an algorithm, which is a set of rules that determines how much money is generated in a given period of time. This is usually referred to as mining, because miners have to solve complex mathematical problems to generate the currency.
Once this is done, the miner is rewarded with the cryptocurrency, which he then can sell at a later date. The more work he does, the more money he earns. There are many different cryptocurrencies, but Bitcoin is probably the most well known.
Where can I invest?
You can buy bitcoin at a variety of places. Most exchanges allow you to buy the currency directly from them, so you don’t need to find a third party to help you do it. You can also use your credit card, or paypal account to buy it.
How can I make money?
There are two ways to profit from investing in cryptocurrency. One is by selling it for fiat money. This means that you can convert it into dollars, euros, or any other fiat currency, and then use it to buy things.
The second way is by trading it on the open market. This involves buying it when it’s cheap, and selling it when it’s expensive. If you can predict when the price will rise, you can make a lot of money.
