Photo by Traxer on Unsplash

What is Cryptocurrency

• Cryptocurrency is a digital or virtual form of currency, which is an alternative form of payment other than traditional currency (fiat currency) like the U.S. Dollar.
• It operates using cryptography for maintaining security, hence the usage of ‘Crypto’ in its name, and it functions on a decentralized technology called blockchain
• Cryptography basically involve creating and analysing protocols that prevent third parties or the public from reading private message (In crypto, we basically want to avoid or prevent bank and government from controlling the digital currency itself and put the power of controlling in the people around it by distributing authority across the network of people that is using it, hence the term decentralized)
• Blockchain is a distributed ledger enforced by a computer known as nodes (more on this in other articles)
• Transaction that was done using cryptocurrency is usually done in a faster and cheaper manner rather than traditional currency, especially when it comes to cross border transaction (I mean crazy fast, usually below 1 minute or 10 seconds)
• So in a more simple term, cryptocurrency is a digital currency that act like a currency but is not controlled by the government and bank and no one has full control on it (decentralized) and it function via the usage of cryptograph and blockchain. The transaction that was made will be done in no time
• If you still don’t understand this, here is a kid explanations😂.Cryptocurrency itself act like money, you use it like money, you can buy thing with it and you can sell stuff and get it as a payment. We called cryptocurrency a digital money because you can send it using your phone and computer . You cannot see it because the robot in your phone help you to send it. The robot in there is the only one can see it…you tell them to send crypto using some button on your phone or computer and they do it so fast that when you blink you eyes that crypto is already sent to your friends.
• So what is cryptocurrency difference with paper money?. So paper money control by bank and crypto is control by a lot of people. Let’s say bank is your dad and that a lot of people is your friend. So your dad will control all the paper money, he can do anything with it. You want to use paper money than you must ask your dad first to use it. So for crypto, let’s say all of your friends and you have crypto accept for you dad, if you want to use it, you don’t need to ask your dad directly and he cannot do anything about it.
• Here is the important thing that I have already taken regarding cryptocurrency for my next article:
  
  1. Type of Crypto
  
  2. Blockchain
  
  3. Tokenomics
  
  4. Ecosystem
  
  5. DeFi

Affiliate and Referral Link

-NordVPN

Offer a great way for us to use the internet in safer and better ways. Click here if you guys are interested in using NordVPN.

-Surfshark

Provide 3 different services involving protecting your privacy and data. They also provide service to protect your device from malware. Click Surfshark VPN, Incogni, or Surfshark Antivirus if your guys are interested in using their service

-CoinLedger

The Number 1 Crypto Tax Platform for crypto trader and investor. Click here if you guys are interested in CoinLedger service and use my Promocode CRYPTOTAX10.

(DISCLOSURE: THIS ARTICLE CONTAIN AFFILIATE LINKS AND REFFERAL LINKS THAT WILL DIRECT YOU TO A CERTAIN PRODUCT)