What is crypto & how does it work?

Cryptocurrency is digital currency that doesn’t require a financial institution like a bank to verify transactions. In recent years it has become a topic of discussion from high profile business people like Elon Musk. Yet, despite the presence of crypto it may seem mysterious. Use this guide to learn about what crypto is and how it works.

What makes up a crypto asset?

While the definition is fluid, there are several features that typically make up a crypto asset: Cryptography: This is where the term “crypto” comes from. A cryptocurrency (or crypto for short) utilizes cryptography, which are techniques for securing information or communications. Cryptocurrencies use what’s called public key cryptography.

What are cryptocurrencies & crypto tokens?

Both cryptocurrencies and crypto tokens fall under this category. Cryptocurrency: These crypto assets are also called crypto coins and are those native to blockchains. So for instance, bitcoin (BTC) is the native cryptocurrency of the Bitcoin blockchain and ether (ETH) is the native cryptocurrency of the Ethereum blockchain.

Is cryptocurrency a good investment?

Cryptocurrency is both a new kind of digital money and an investment opportunity. Learn the facts behind the different types of crypto products, their benefits, and how they function. Cryptocurrency is digital currency that doesn’t require a financial institution like a bank to verify transactions.