Everything You Need to Know About Cryptocurrencies – TrendinTech

Used to be that cryptocurrencies were a term you only heard in tech circles. These days it pops up in the news with regularity and the Average Joe is asking himself, should I get in on this cryptocurrency business? What is exactly and how should I go about it?

This guide has some of the basic answers where you can learn what cryptocurrency is, how it works, where it came from, its benefits, the five most popular cryptocurrencies, and next steps.


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What is Cryptocurrency?

A cryptocurrency is a form of digital cash, but it is not backed by any government. Instead, they are backed by their supported networks. They are database entries encrypted with highly complex mathematics. Because of this validating, a cryptocurrency transaction takes a lot of work and makes mining a job that’s not for everyone.

Shared over networks, the networks prevent possible errors, like double-spending.  Also, there’s no central server or controller monitoring transactions or generating new currency. The currency is created by the separate networks and generally, not interchangeable or equal.

Cryptocurrency values can change in reaction to a demand or a shortage, just like traditional currencies.

How do cryptocurrencies work?

Cryptocurrencies are shared over networks and then it is proved on a public database in a process referred to as mining. Each mining process is different for the cryptocurrencies.

A cryptocurrency transaction is made between digital wallets. The transactions are sent to blockchain databases and verified through