What Is a Cryptocurrency? A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.
Thus, what is Cryptocurrency layman's terms?
In simple terms, cryptocurrency is a type of digital or virtual money. It serves as ordinary money, such as dollars, pounds, euros, yen, etc. But it has no physical counterparts — banknotes or coins that can be carried around, that is, the cryptocurrency exists only in electronic form.
Over and above that, what is the main purpose of Cryptocurrency? A cryptocurrency is a medium of exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information. Cryptocurrency is defined by Investopedia.com as a decentralized “digital or virtual currency that uses cryptography for security” making it difficult to counterfeit.
Either way, how a Cryptocurrency is created?
Cryptocurrency is created by code. In many cases, new coins are created when transactions are confirmed by a process known as mining. ... For example, a cryptocurrency may create some tokens upon launch as developer rewards or a cryptocurrency may pay out tokens as dividends on a monthly basis.
How safe is Cryptocurrency?
How Secure Is Cryptocurrency? Cryptocurrencies are usually built using blockchain technology. ... It's a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that's hard for hackers to tamper with. In addition, transactions require a two-factor authentication process.