Cryptocurrency Definition

A digital currency is a cryptocurrency or virtual currency created by cryptography, immune from counterfeiting and double-spending.

Numerous digital currencies are decentralized organizations in light of blockchain innovation, a conveyed record upheld by a divergent organization of computers.

The terrible advantage that exists of cryptocurrencies is that they are immune to censorship, making them invulnerable to government resistance and control or manipulation.

In brief, cryptocurrency is the opposite of traditional currency (banknote, coin)

These cryptocurrencies are supported by cryptographic systems that allow secure online payments without an intermediary (third party). To be more precise, the bank example is an intermediary between the parties in financial transactions.

 The term "encryption (crypto)" refers to the various encryption algorithms and encryption techniques that protect these (entries), such as hash functions, private and public key pairs, wallets, encryption, etc.

Types of Cryptocurrency

There are many, many cryptocurrencies, and I will mention to you the most important ones:

 1- Bitcoin (the largest cryptocurrency) has an abbreviated term called “BTC.”

 2- Ethereum (the second largest coin) has an abbreviated term called “ETH.”

Note: I have categorized the two digital currencies according to their price and circulation.

how to get cryptocurrency

Cryptocurrencies can be obtained or purchased from cryptocurrency exchanges. And not all e-commerce sites Allow making purchases with cryptocurrency.

Cryptocurrencies (even the most famous like bitcoin) are rarely used for retail transactions. However, the reason lies in their use as trading tools for the rise in the value of cryptocurrencies which has made them somewhat popular.

Important: Cryptocurrencies can be obtained for free through several methods such as apps, profitability sites, etc.

Advantages and Disadvantages of Cryptocurrency

As you know, everything has its pros and cons, and this rule will be present in cryptocurrencies.

The advantages and disadvantages of cryptocurrency include the following

Advantages

1- Transfer money quickly and with nominal fees.

2- Financial transactions without an intermediary and without government interference or authority

3- immune to forgery

Disadvantages

1- its price volatility.

2- They consume a lot of energy in mining it.

3- Use them in criminal activities.

Related resources

What is Bitcoin, and how does it work?