What is Cryptocurrency? 8 Common Questions Answered.

1. What is Cryptocurrency?

Cryptocurrency is any digital store of value that one can exchange for goods and services.

2. What Is the Purpose of Cryptocurrency?

Cryptocurrency was initially conceived as a way of as a virtual currency and alternative form of payment versus traditional banking.

3. What Is Blockchain Technology?

All cryptocurrency transactions are recorded on a blockchain public ledger. You can think of a blockchain similar to your account history on an online bank account. Transaction information gets stored in “blocks” that can be “chained”

4. What Do Transactions Look Like on the Blockchain?

Every transaction includes three critical pieces of information: Input, Output, and Amount.

5. How Do Cryptocurrency Wallets Work?

Each wallet consists of two random strings of characters. The first string acts like a username to signify your account on the blockchain, while the second is a private key or password.

6. Are Cryptocurrencies Safe?

Blockchain technology is often described as “hack-proof” because any hacker would need to modify all blocks simultaneously to ensure that the chain was in agreement.

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