What is Cryptocurrency?

Photo by Make Someone’s Day

Cryptocurrencies are digital assets that act as a medium of exchange. Unlike traditional currencies, a cryptocurrency:

  1. Makes use of cryptography to secure transactions. Ownership of cryptocurrency units are proven exclusively through the use of cryptography.
  2. Is decentralized. It exists in a system that does not require a central authority. All transactions can be monitored in a public ledger called a blockchain.

Bitcoin was the first cryptocurrency ever made. Following its success, many other alternative coins—or Altcoins—have emerged.