Introduction
Cryptocurrencies have taken the financial world by storm, capturing the attention of investors, tech enthusiasts, and even mainstream media. But what are cryptocurrencies, and how do they work? If you’re new to this fascinating and revolutionary realm, fear not! This beginner’s guide will demystify cryptocurrencies, providing you with the fundamental knowledge you need to understand and use digital currencies like a pro.
1. What are Cryptocurrencies?
Cryptocurrencies, often referred to as digital or virtual currencies, are decentralized digital assets that use cryptography to secure transactions and control the creation of new units. Unlike traditional currencies issued by central governments, cryptocurrencies are based on the concept of blockchain technology, a distributed ledger that records every transaction across a network of computers.