Anyone interested in crypto for beginners should know the following:
Cryptocurrency, generally referred to as crypto, is a type of payment, which can circulate without a central monetary authority like a bank or government. It is a digital asset comprising highly encrypted and secure online transactions.
Unlike traditional currencies, crypto is decentralised and is typically finite in number. It is sometimes equated to precious metals, including gold and silver.
This currency is typically created through mining involving a complex problem-solving process usually solved by powerful computers. Essentially, when you exchange cryptocurrency, more of it is introduced in the world.
Most cryptocurrencies use blockchain technology to manage and record transactions.
There are over 10,000 listed cryptocurrencies with a total worth exceeding $1.7 trillion, with Bitcoin being the largest traded cryptocurrency in terms of market capitalisation, followed by Ethereum and Tether.