What Is cryptocurrency and how does it work?

What Is Cryptocurrency and How Does It Work?

Cryptocurrency is a form of digital money that can be used during an online purchase or sale. As the term “digital money” suggests, its value is not held in physical notes or coins. Cryptocurrency is not based on other assets (e.g. gold), and does not go through banks like the more typical forms of money do. You can see how Bitcoin has faired over the last decade in this infographic originally created by Online Casino Betway.

Typical forms of money, such as Pound Sterling and the US Dollar, are regulated through a centralised system, where financial institutions keep a record of which account holders own what, stopping them from duplicating money.

Instead of being regulated by banks or other financial institutions, cryptocurrency is monitored through a decentralised system, using “blocks” (digital information about transactions) that are “chained” together in a public database. This regulatory system is known as…