By Stephen L. Thomas | January 12, 2024 | In
Cryptocurrency is a digital and decentralized type of currency that has no central authority. While the euro and dollar are managed by central authorities, cryptocurrencies are managed by its users. These alternative investments have been around since 2009 and are becoming increasingly attractive to investors. However, they’re also considered risky investments for many reasons, which will be mentioned below. How Does Cryptocurrency Work? Cryptocurrency is a type of decentralized and digital currency that doesn’t rely on banks to verify transactions. Instead, it uses encryption to verify transactions. When crypto funds are transferred, those transactions are recorded on a public ledger known as a blockchain. In terms of how each cryptocurrency unit is produced, it’s done through a process known as mining. During the mining process, transactions are verified and new coins are created and circulated. Also known as crypto, these digital currencies enable people around the globe to facilitate transactions between one another and can be used to purchase goods and services. To make purchases using Bitcoin, people usually need a digital cryptocurrency wallet. Aside from being used for purchases, many people also invest in