What is Cryptocurrency?

A cryptocurrency, a new kind of digital currency designed to function as a virtual medium of currency trading, is becoming increasingly popular on the internet. A lot of people have discovered the many benefits and advantages of this type of trading has to offer and have begun taking it upon themselves to start investing in these digital currencies. This is one way for them to benefit from an ever-growing industry without risking their own money, but rather with a combination of real money and virtual money. Cryptocurrency is not a new idea; however, the technology that underlies it has been upgraded in order to meet the current demands of the market.

If you’re wondering what Cryptocurrency exactly is then you will first need to know what Cryptocurrency is not. Just like the word” Cryptography” does not mean the same thing as” cryptography” the two terms do not always go hand-in-hand. Cryptocurrency, along with other virtual currencies such as ether and peer-to-peer currencies are not governed by any governing board or government. Cryptocurrency is governed by a “crypto-currency” or a virtual currency that is not backed by any actual currency.

Some people are confused as to how Cryptocurrencies work, therefore, the best way to explain it is by explaining a traditional marketplace. An example of a marketplace would be a car dealership. A car dealership has a large variety of cars to choose from and they also have various different makes, models, colors, and prices. The dealership keeps all of the information in a “blockchain”, or a record-keeping system that consists of multiple separate servers that are each assigned a unique IP address and link together with other servers via a powerful and effective backbone known as the “blockchain”.