Cryptocurrency is the new buzzword. The concept of cryptocurrency has been around for quite some time but it’s only recently that it has gained popularity. The reason for this is because it allows people to buy and sell things online without having to use money.
The first thing you need to understand about cryptocurrency is that it is not legal tender. This means that you cannot use it to pay for goods and services. However, if you have ever used PayPal or a credit card to pay for something online then you have used cryptocurrency.
The reason why it is not legal tender is because it is not backed by any government or central bank. In fact, it is not even backed by a company. It is backed by an algorithm which is run by the network. When you make a purchase with your credit card or PayPal account you are essentially using the currency of the country that issued the card or the account. Cryptocurrency is different in that it is not backed by any one country. Instead it is backed by a network of computers all over the world.
If you want to understand how cryptocurrency works you should look at the blockchain. A blockchain is a database which stores all transactions made with the currency. These transactions are then verified by the network. Each transaction is verified by two different nodes on the network. If one node says the transaction is valid and the other says it isn’t then the transaction is rejected.
To be able to participate in the network you will need to get a wallet. A wallet is a piece of software that can store your cryptocurrency. There are many different types of wallets. You can get a hardware wallet like a USB stick or a paper wallet. Or you can get a software wallet like Electrum, Mycelium, Bitcoin Core, or MultiBit. Once you have a wallet you will be able to send and receive cryptocurrency.
If you are interested in learning more about cryptocurrency I recommend you start by looking at sites like Reddit or CryptoCurrency News. If you want to learn how to invest in cryptocurrency I suggest you read the book “The Ultimate Guide To Investing In Cryptocurrency”.
