How Does Cryptocurrency Work?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
What is Bitcoin?
Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Bitcoin is often called the first cryptocurrency, although prior systems existed. Bitcoin is more correctly described as the first decentralized digital currency. Bitcoin is traded on a peer-to-peer basis with a distributed ledger called the blockchain, and the Bitcoin network is operated by users who process transactions and secure the network.
How do I Buy Bitcoin?
There are a few ways to buy Bitcoin. You can purchase Bitcoin on a decentralized exchange, or you can use a Bitcoin ATM. You can also purchase Bitcoin with a credit card or a wire transfer.
What is a Decentralized Exchange?
A decentralized exchange is an exchange that does not rely on a third party to hold or custody the assets being traded. Instead, the assets are held by the users of the exchange. Decentralized exchanges are often built on blockchain technology.
What is a Bitcoin Wallet?
A Bitcoin wallet is a digital or virtual wallet that stores Bitcoin and allows users to send and receive Bitcoin. Bitcoin wallets are often encrypted and secured with a password.