Cryptocurrency – Meaning and Definition
Cryptocurrency is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. There is no central issuing or regulatory authority for cryptocurrencies; instead, it uses a decentralized system to record transactions and issue new units.
What is meant by cryptocurrency?
Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that allows anyone, anywhere, to send and receive payments. Instead of carrying and exchanging money in the real world, cryptocurrency payments exist as digital entries in an electronic database that records specific transactions. When transferring cryptocurrency, transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.
Cryptocurrency got its name because it uses cryptography to verify transactions. This means there is an advanced coding system involved in storing and transferring cryptocurrency data between wallets and public ledgers. The goal of cryptography is to provide security and safety.
The first cryptocurrency was Bitcoin, which was established in 2009 and remains the most well-known to this day. Much of the interest in cryptocurrencies involves trading for profit, where speculators sometimes drive prices up.