1)What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.   Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The most popular and well-known cryptocurrency is Bitcoin. Other popular cryptocurrencies include Ethereum, Litecoin, and Monero.   Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Cryptocurrencies are also often used as an investment, although there are many risks involved.   Cryptocurrencies are digital or virtual tokens that use cryptography for security. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The most popular and well-known cryptocurrency is Bitcoin. Other popular cryptocurrencies include Ethereum, Litecoin, and Monero.   Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Cryptocurrencies are also often used as an investment, although there are many risks involved.   Cryptocurrencies are digital or virtual tokens that use cryptography for security. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. The most popular and well-known cryptocurrency is Bitcoin. Other popular cryptocurrencies include Ethereum, Litecoin, and Monero.   Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Cryptocurrencies are also often used as an investment, although there are many risks involved.  

2) 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 and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created. These are often called altcoins, as a contraction of "bitcoin alternative."   How do cryptocurrencies work?   Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.   Cryptocurrencies 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 and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created. These are often called altcoins, as a contraction of "bitcoin alternative."   How do cryptocurrencies work?   Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.   Cryptocurrencies 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 and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created. These are often called altcoins, as a contraction of "bitcoin alternative."   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 and most well-known cryptocurrency, was created in 2009. Since then, thousands of other cryptocurrencies have been created. These are often called altcoins, as a contraction of "bitcoin alternative."

3) The benefits of cryptocurrency

Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.   Bitcoin, created in 2009, was the first decentralized cryptocurrency. Since then, numerous other cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternative.   Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto.   As of May 2018, over 1,800 cryptocurrency specifications existed. Within a cryptocurrency system, the safety, integrity and balance of ledgers is maintained by a community of mutually distrustful parties referred to as miners: who use their computers to help validate and timestamp transactions, adding them to the ledger in accordance with a particular timestamping scheme.   Miners have a financial incentive to maintain the security of a cryptocurrency ledger.   Cryptocurrencies are used primarily outside existing banking and governmental institutions and are exchanged over the Internet. While these alternative, decentralized modes of exchange are in the early stages of development, they have the unique potential to challenge existing systems of currency and payments. As of December 2017 total market capitalization of cryptocurrencies is bigger than 600 billion USD and record high daily volume is larger than 500 billion USD.   Cryptocurrency transactions are normally irreversible after a number of blocks confirm the transaction. Additionally, cryptocurrency private keys can be permanently lost from local storage due to malware, data loss or the destruction of the physical media. This prevents the cryptocurrency from being spent,  

4) The risks of cryptocurrency

The risks of cryptocurrency are manifold. They include the potential for loss of principal, volatility, and the lack of regulatory oversight.   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 and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.   Cryptocurrencies are subject to price volatility and fluctuate in value. For example, the price of Bitcoin fell sharply in 2018, from a high of nearly $20,000 to a low of around $3,000.   Investors in cryptocurrency should be aware of the risks they take on when investing. These risks include loss of principal, price volatility, and the lack of regulatory oversight.   Loss of Principal   Investors in cryptocurrency can lose all of their investment. Cryptocurrencies are not backed by any government or financial institution and there is no guarantee that they will retain their value.   Price Volatility   Cryptocurrencies are subject to price volatility and can lose value quickly. For example, the price of Bitcoin fell sharply in 2018, from a high of nearly $20,000 to a low of around $3,000.   Regulatory Oversight   Cryptocurrencies are not subject to government or financial institution regulation. This lack of oversight creates opportunities for fraud and manipulation.   5) The future of cryptocurrency The future of cryptocurrency is shrouded in uncertainty. While the underlying technology is sound and has the potential to revolutionize how we interact with the digital world, there are still many unknowns about the future of cryptocurrency.   Will it be able to gain mainstream adoption? Will governments try to regulate it? What will happen to the price of Bitcoin and other major cryptocurrencies?   Only time will tell. But one thing is for sure, the future of cryptocurrency is sure to be eventful.