Cryptocurrencies are forms of digital money that exist only in the online world, with no actual physical form. They were created as an alternative to traditional money, and gained popularity for their forward-looking design, growth potential, and anonymity. One of the earliest, most successful forms of cryptocurrency, Bitcoin, came out in 2009, and gained mainstream recognition in the years following.
Bitcoin’s success inspired dozens of other cryptocurrencies that operate in more or less the same way. You may be familiar with names like Ethereum or Dogecoin, for instance. Today, people all over the world use cryptocurrencies to buy things, sell things, and make investments.
Two words—“cryptography” and “currency”—combine to form “cryptocurrency,” which is electronic money, based on the principles of complex mathematical encryption. All cryptocurrencies exist as encrypted decentralized monetary units, freely transferable between network participants. Or put more simply, cryptocurrency is electricity converted into lines of code, which have a real monetary value.
Bitcoin’s success inspired dozens of other cryptocurrencies that operate in more or less the same way. You may be familiar with names like Ethereum or Dogecoin, for instance. Today, people all over the world use cryptocurrencies to buy things, sell things, and make investments.
Two words—“cryptography” and “currency”—combine to form “cryptocurrency,” which is electronic money, based on the principles of complex mathematical encryption. All cryptocurrencies exist as encrypted decentralized monetary units, freely transferable between network participants. Or put more simply, cryptocurrency is electricity converted into lines of code, which have a real monetary value.