Introduction to Cryptocurrency
Key Takeaway The fundamentals of cryptocurrency work a bit like storing valuables in a digital safe. Your crypto assets are the valuables you’re protecting, while cryptography acts as the safe’s unique PIN, ensuring only the rightful owner can access them. Meanwhile, the blockchain works like a public, permanent logbook that records every time the safe is used. This logbook makes it easy for everyone to see if something unusual happens.
9/12/20251 min read
The world of cryptocurrency is vast and exciting. But its fast-paced environment can be a bit overwhelming when you are first getting started. Whether you want to begin building your very own crypto portfolio, or just learn about how everything works, this guide will run through the basics to get you off the ground floor.
What is cryptocurrency?
A cryptocurrency is a type of digital asset or currency that is secured using cryptography, a method of encrypting information. This security makes it extremely difficult to counterfeit or spend the same cryptocurrency twice. Bitcoin is the most well-known cryptocurrency, but there are now more than 20,000 others in circulation.
Most cryptocurrencies are built on blockchain technology, which is a distributed ledger maintained by a network of computers around the world. A defining characteristic of a cryptocurrency is that it is usually not issued by a central authority, such as banks or governments, meaning that they are resistant, but not immune, to government manipulation and interference.
Blockchain technology is the core of decentralisation, and is one of cryptocurrency’s defining characteristics.