{"id":29617,"date":"2023-10-15T02:00:12","date_gmt":"2023-10-15T09:00:12","guid":{"rendered":"https:\/\/www.advantagegold.com\/?p=29617"},"modified":"2023-10-15T02:00:12","modified_gmt":"2023-10-15T09:00:12","slug":"what-is-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.advantagegold.com\/blog\/what-is-cryptocurrency\/","title":{"rendered":"What is Cryptocurrency?"},"content":{"rendered":"

You\u2019ve undoubtedly heard the stories.\u00a0<\/span><\/p>\n

Some detail massive rags-to-riches gains. Others sew\u00a0 tales of woe and speak of back-breaking losses. Whether fueled by facts or hyperbole, one thing is certain.<\/span><\/p>\n

Cryptocurrency is everywhere.<\/span><\/p>\n

What started as a practical solution for peer-to-peer transactions is now a worldwide phenomenon.\u00a0<\/span><\/p>\n

But what is crypto, exactly?\u00a0<\/span><\/p>\n

Consider this guide as a crash course in cryptocurrency for beginners.<\/span><\/p>\n

What is Cryptocurrency, and How Does it Work?\u00a0<\/span><\/h2>\n

Cryptocurrency is digital currency<\/a><\/strong> used for speculative investment and as a method of payment.\u00a0<\/span><\/p>\n

Crypto runs on blockchain technology.\u00a0<\/span><\/p>\n

The blockchain consists of blocks of shared and agreed upon information. The totality of blocks creates a chain. That chain is immutable.<\/span><\/p>\n

Blockchain transactions are permanent unless all parties agree upon changes. It is virtually counterfeit-proof.<\/span><\/p>\n

As a payment system, cryptocurrency offers decentralized peer-to-peer transactions.\u00a0<\/span><\/p>\n

Completing decentralized transactions doesn\u2019t require an intermediary such as a bank, financial institution, or government. Only the parties involved are privy to the transaction, and the blockchain ensures accurate accounting and transfer of funds.\u00a0<\/span><\/p>\n

Decentralization makes crypto an efficient medium of payment for transactions across borders.<\/span><\/p>\n

Cryptocurrency eliminates the need for banks or other controlling parties. Decentralization ensures transactions are cheaper, instantaneous, secure, and private.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

No personal offline information is shared during a crypto transaction, making it completely anonymous.\u00a0<\/span><\/p>\n

Common Types of Cryptocurrency\u00a0<\/span><\/h2>\n

So, if cryptocurrency is digital, what are crypto coins? And how do you acquire and spend them?\u00a0<\/span><\/p>\n

Those are great questions.\u00a0<\/span><\/p>\n

Keep in mind that there are approximately 23,000 cryptocurrencies<\/a>.\u00a0<\/span><\/p>\n

The short answer is that cryptocurrency and crypto coins are the same thing.\u00a0<\/span><\/p>\n

There is no physical representation of a crypto coin. Any shiny item that resembles a denominated coin is purely symbolic and holds no value, relevance, or redemption value to cryptocurrency.\u00a0<\/span><\/p>\n

Of the plethora of available crypto, a few stand alone in terms of popularity, value, and utility.\u00a0<\/span><\/p>\n

Bitcoin<\/span><\/h3>\n

Bitcoin (BTC) was the first cryptocurrency.\u00a0\u00a0<\/span><\/p>\n

Created in 2009, it is the most popular, widely accepted, and valuable crypto.\u00a0<\/span><\/p>\n

There are over 19 million (out of a possible 21 million) bitcoins in circulation, with a market cap of over $500 billion.<\/span><\/p>\n

Many merchants across the globe accept payments in BTC.\u00a0<\/span><\/p>\n

Bitcoin payments are instant, permanent, and do not allow chargebacks.\u00a0<\/span><\/p>\n

They also do not include the transaction fees traditional credit card companies charge.\u00a0<\/span><\/p>\n

The price of bitcoin has fluctuated between $0.0009 (2009) and a high of $68,789 (2021).<\/span><\/a><\/p>\n

Traders speculate on the future of bitcoin\u2019s price, buying and selling it on crypto exchanges at high volume.\u00a0<\/span><\/p>\n

Ethereum<\/span><\/h3>\n

Ethereum\u2014and its ether token (ETH)\u2014is the No. 2 crypto in the world.<\/span><\/p>\n

Ethereum is a blockchain platform used to create global, decentralized software solutions.\u00a0<\/span><\/p>\n

Developers prefer ethereum because it is easily scalable, secure, and programmable. Much of ethereum-based technology looks to disrupt and change how industries work.\u00a0<\/span><\/p>\n

Unlike bitcoin, ethereum charges transaction fees for blockchain maintenance. \u201cGas,\u201d as the fees are called, is paid with ETH.\u00a0<\/span><\/p>\n

ETH is used to purchase non-fungible tokens (NFTs)<\/a>, which are stored on the ethereum network.\u00a0<\/span><\/p>\n

The tokens are also key to:<\/span><\/p>\n