Skip to main content

7 Things You Need To Know About Cryptocurrency in 2021 - 1 of 7

#1 - What Is A Cryptocurrency

The word cryptocurrency is a bit of a misnomer and perhaps the biggest hurdle for people to understand. Cryptocurrencies aren’t money in the sense of a dollar or a euro. Cryptocurrencies are tokens that take up space on a blockchain. A blockchain is a form of distributed ledger, the cryptocurrency is the means of tracking value on that ledger.

Think of it like an abacus. The frame of the abacus represents the network of computers that support the blockchain and the beads are the cryptocurrency that makes the abacus network work. Cryptocurrency/Blockchain networks are made up of miners. The miners keep track of transactions, maintain the distributed ledger, and get rewarded with “mined” coins.

The point of blockchains and cryptocurrencies is to keep track of value in a decentralized manner. The applications for blockchain are virtually endless but tend to center around the transfer or storage of value. Bitcoin is the first and most widely used cryptocurrency and it is little more than a way to exchange value across the Internet. To own and trade in cryptocurrencies, you need to have a wallet and an account with an exchange but more about that later.

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research. As a bonus to opt-ing into our email newsletters, you will also get a free subscription to the Liberty Through Wealth e-newsletter. You can opt out at any time.