Cryptocurrency is a type of digital or virtual money that is secured by cryptography, making it almost impossible to counterfeit or double-spend. It is a decentralized network based on blockchain technology, a distributed ledger that is enforced by a disparate network of computers. Cryptocurrency is not issued by any central authority, making it theoretically immune to government interference or manipulation. It is a peer-to-peer electronic currency that cannot be physically held, but has value nonetheless.
In simple terms, cryptocurrency is a form of digital money. It functions like ordinary money, such as dollars, pounds, euros, yen, and so on. However, it does not have physical counterparts like banknotes or coins that can be carried around. That is to say, cryptocurrency only exists in electronic form.
Ethereum, one of the largest cryptocurrencies by market capitalization after Bitcoin, requires users of its blockchain to pay transaction fees in its currency known as Ether.Investors can make money from cryptocurrency by mining Bitcoin or selling their Bitcoin at a profit. The Internal Revenue Service (IRS) considers it a financial asset or property. By using cryptocurrency, cryptocrats wanted to give internet users more control over their money and information.Supporters of cryptocurrencies such as Bitcoin view them as the currency of the future and are rushing to buy them now, presumably before they become more valuable. Not all cryptocurrencies have a currency that has a clear use or that increases the value of its underlying blockchain.These are the 10 most traded cryptocurrencies by market capitalization according to CoinMarketCap: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Tether (USDT), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Cardano (ADA), Polkadot (DOT) and Binance Coin (BNB).Cryptocurrency advocates often place a high value on their anonymity, citing privacy benefits such as protection for whistleblowers or activists living under oppressive governments.