What is the method of creating cryptocurrency?

Cryptocurrencies operate on a distributed public ledger called a blockchain, which is a record of all transactions that is updated and maintained by holders of the currencies.

Cryptocurrency units are created through a process called mining, which involves using computer power to solve complex mathematical problems that generate coins. Users can also buy coins from brokers, then store and spend them using cryptocurrency wallets.

If you own cryptocurrency, you do not own anything tangible. What you own is a key that allows you to transfer a record or unit of measure from one person to another without a trusted third party.

Although Bitcoin has been around since 2009, cryptocurrencies and blockchain technology applications are still in their infancy in terms of finance, and more uses are expected in the future. Eventually, transactions including bonds, stocks, and other financial assets can be traded using the technology.