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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.







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