Photo by Make Someone’s Day
Cryptocurrencies are digital assets that act as a medium of exchange. Unlike traditional currencies, a cryptocurrency:
- Makes use of cryptography to secure transactions. Ownership of cryptocurrency units are proven exclusively through the use of cryptography.
- 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.