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Twitter about

What is Cryptocurrency?

Cryptocurrency is a medium by which monetary value can move around the Internet in the form of code. Much like the USD or the EURO, people now use so-called cryptocoins to buy and sell goods and services in a matter of seconds. Cryptography is used to secure the exchange of this digital information and facilitate the safe production of coins. 

The first crypto currency to be developed was Bitcoin back in 2009. Bitcoin was a digital currency that could be exchanged over the Internet in the form of code. Also referred to as altcoins, the first crypto coins now change hands for thousands of US Dollars each. 

Why Are Digital Currencies So Popular?

Cryptocurrencies like Bitcoin, Dash (digital cash) and Litecoin are free from governmental control. The Federal Reserve in the USA, for instance, heavily influences the value of the USD through fiscal policy. Digital currencies are free from political influence, which is why so many people trust them. To differing degrees, these currencies are fully decentralized, and they offer a level of privacy that isn’t possible with traditional monetary transactions.

Most of these new currencies are designed in a way that reduces the production of new coins over time. There is a market cap in traditional (fiat) currencies that doesn’t exist with the USD, the GBP or the JPY. Governments can create new currency whenever they feel it’s necessary, creating inflation and reducing the real value of each unit.

Most cryptocurrencies are created using one of two protocols: proof of stake and proof of work. These digital currencies are controlled by miners, who are ordinary members of the public who use their own computer hardware to help with the processing of transactions.

Buy and Sell Cryptocurrencies 

It is now easier than ever to invest in altcoins — all you need is an online wallet and a credit or debit card. You can start your own portfolio of cryptocurrencies, and use the data and tools on a digital currency pricechart to help you make the best possible trading decisions. Check the current market price of your coins, as well as the exchange rates with other international currencies.

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