What is cryptocurrency and how does it work?

What is cryptocurrency and how does it work?

Cryptocurrency is a form of currency that exists digitally or virtually and employs cryptography to secure transactions.

There is no central authority instituted to issue or regulate digital currency. It uses a decentralized system to record transactions.

Bitcoin and several other cryptocurrencies are backed by a technology called blockchain.

Individual units of cryptocurrencies can be called coins or tokens, depending on how they are used.

Cryptocurrencies are majorly created through a process known as mining, majorly used by Bitcoin.

For most people, the convenient way to get cryptocurrency is to buy it, either from an exchange or another user.

According to reports, approximately 20,000 different cryptocurrencies are traded publicly.

Experts are predicting that the number of global crypto owners can reach 1 billion by the end of 2022.