What is cryptocurrency?
Cryptocurrency is a type of digital currency that can be used to purchase goods and services online. It is not a fiat currency, such as the US Dollar or the Euro, but rather a decentralized currency that is generated by computer algorithms.
Cryptocurrency is generally not backed by any government or central bank, and there is no physical representation of it. It is stored electronically in a digital wallet.
How do I buy cryptocurrency?
There are many ways to buy cryptocurrency. You can buy it directly from a cryptocurrency exchange. There are many exchanges, such as Coinbase, Kraken, and Poloniex. These exchanges will trade different cryptocurrencies against one another. You can also use an exchange to trade your existing fiat currency for cryptocurrency. This can be done at a number of places, including eToro and LocalBitcoins.
Can I buy cryptocurrency with my credit card?
Yes, you can buy cryptocurrency with your credit card. However, this is not recommended, because it is not insured and there are many scams out there. If you decide to use a credit card, make sure that you use a well-known company.
What is the difference between a cryptocurrency and a token?
A cryptocurrency is a decentralized currency that is traded over the internet. A token is an asset that is issued by a company, and is usually backed by a real world product or service. For example, if you bought a share in a company, you would receive a token that represents that share.
How does cryptocurrency work?
It works by using cryptography to generate a public and private key pair. The public key is published on the internet, and the private key is kept secret. When you want to transfer money, you send the public key to the recipient, who uses the private key to decrypt the message. This allows you to keep your private key private, and prevents anyone else from being able to steal your money.
How is cryptocurrency traded?
There are two main types of cryptocurrency trading:
Peer-to-peer trading – This involves direct trades between two parties. Exchanges – These are centralized exchanges where you can buy and sell cryptocurrencies.
Which is better?
Exchanges are more secure than peer-to-peer trading, but are more expensive. It is up to you to decide which is best for you.