Cryptocurrency is a digital or virtual coin secured by cryptography, which makes it next to impossible to counterfeit. They have their own store values and are designed to use as a medium of exchange for buying goods or services. Cryptocurrencies are decentralized, meaning that no authority regulates them. They are built on blockchain network technology, which ensures transparency and helps track every transaction. Such currencies, theoretically, are immune to government interference or any kind of manipulation. Because cryptocurrencies do not have an underlying economic base, they are inflation-proof. Plus, the digital structure facilitates free portability across geographical borders, divisibility and transparency. However, they are often criticized for the possibility of misuse in illegal activities, exchange rate volatility, and the vulnerability of the infrastructure underlying them.
How do cryptocurrencies work?
Cryptocurrencies work using a technology called a blockchain. They are tokens that can be used as a form of payment in exchange for online goods and services. They carry a pre-determined store value of their own, just like any other fiat currency like the US dollar or the Indian rupee. Cryptocurrencies are digitally mined, where very sophisticated computers solve extremely complex computational mathematics problems. Their mining is painstaking, costly, and only sporadically rewarding.
What is blockchain technology?
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. Virtually anything of value can be tracked and traded on a blockchain network, reducing the risk and cutting costs for all involved. Unlike a typical digital database, blockchain stores data in blocks that are then chained together. As new data comes in, it is entered in a fresh block. Once the block is filled with data, it is chained to the previous block, which then chains the data in chronological order. Blockchain’s most common use so far has been as a ledger for transactions. In the case of cryptocurrencies, blockchain is used in a decentralized way so that no single person or group has control over it and, instead, all users can retain control collectively. Decentralized blockchains are immutable, which means data once entered is irreversible. In the case of cryptocurrencies, this means transactions are recorded permanently and can be viewed by anyone.
How to invest in cryptocurrency?
It’s not a very difficult task to invest in cryptocurrency, thanks to the easy access available to crypto exchanges and deep penetration of the internet and smartphones. Technology has eased access to digital currencies for potential investors. To invest in cryptocurrencies, investors need to first do some homework for choosing the right cryptocurrency and crypto exchange. One can buy these currencies using their home currencies, or US dollars, from his/her preferred exchange. However, there are some currencies that accept investment only in Bitcoins or other cryptocurrencies.
Well in simple terms, it’s a community of people who come together online regarding cryptocurrency. It’s an online community where you can discuss anything.
There are different types of cryptocurrency communities out there. Cryptocurrency is a digital currency built with cryptographic protocols that make transactions secure and difficult to fake. It makes it easier to conduct transactions so if you’re looking to purchase something and you need help, you can go to the community you are part of and ask for help.
There are specific communities that discuss only specific things like specific coins and topics. It’s best to be cautious when it comes to cryptocurrency because there are people that try to lure others in to invest in coins and plan on pumping and dumping.
A Cryptocurrency community is essentially an online community that rallies around a core concept, like any community, but further aligns their community engagement and activity toward achieving the mission or vision utilizing a token at their core.
For instance, the Ethereum blockchain community was formed through an Initial Coin Offerings (ICO) conducted by its Founders which they used to launch the network, laying the core infrastructure.
Cryptocurrency communities work very similarly to online communities in the sense that they also utilize the pre-existing framework laid down on the internet in the form of platforms, social media platforms, forums, and other avenues of discoverability.
Hope this helps provide you with some insight along with the rest of the answers on this thread!