Cryptocurrencies are backed by a public ledger system known as the blockchain, which ensures that decentralized peer-to-peer transactions are conducted without the need of a third party, such as a bank, government, or other financial regulatory bodies.
When Bitcoin was launched in late 2009 as the first cryptocurrency, it was intended to
be the future of money. Cryptocurrencies such as Bitcoin are digital currencies not backed by real assets or tangible securities.
They are traded between consenting parties with no broker and tracked on digital ledgers.
Several cryptocurrencies have since sprung up, and while most of them have attractive monetary qualities,
investors have particularly been concerned with their characteristics as a digital store of value.
Cryptocurrencies have shown relatively low correlation to economic fundamental data and other
markets, leaving technical analysis and crypto-specific news as the main drivers for analyzing them.
Cryptocurrencies carry inherent value, and this has made them legitimate financial assets that
can be bought and sold for profit.
Blockchain is an open digital distributed ledger that publicly holds records in a manner that is secure, transparent, and decentralised. It is essentially a public database that is not controlled by one single entity.
A wallet is a piece of software or hardware that gives you the ability to store and exchange your cryptocurrencies. Think of a crypto wallet as a ‘crypto bank account’ that helps you to keep your coins or tokens.
Cryptocurrencies have emerged as a lucrative opportunity for an investment portfolio. Their prices are less influenced by underlying economic performances or political stability, and more by demand and supply.
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