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Definition of cryptocurrencies

Submitted by • November 16, 2021 Website:

A cryptocurrency (or crypto currency) 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 a kind of alternative currency and digital currency (of which virtual currency is a subset). Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.

The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since the release of Bitcoin, over 4,000 altcoins (alternative variants of Bitcoin, or other cryptocurrencies) have been created.

A cryptocurrency with good 24h performance is no indicator of future gains. In fact in a great deal of cases we are talking about so called “pump and dump” coins which are just as likely to quickly perform a complete reversal on their current price gains. Extreme caution should be taken with consistent pump and dump coins and you are literaly gambling your money like you would do by placing a bet on red or black at a cryptocurrency casino. Always do your due diligence before making an investment in any cryptocurrencies and please make sure you are using a reputable crypto exchange.

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