Cryptocurrency: Explained in Simple Terms

Introduction

In an understandable way, cryptocurrency refers to a digital currency in which a decentralized system verifies all the transactions.

The verifying and record-maintaining task is done via a process called cryptography.

Cryptography is the process in which the messages exchanged between two parties are secured and encrypted.

History

The first cryptocurrency invented was Bitcoin. Bitcoin was first innovated in 2008 by Satoshi Nakamoto.

However, many people believe the name to be a false one, and consider it to belong to a group of people, rather than only to an individual.

Eventually, the currency came to use in 2009 when it's implementation was released as open-source software. Even so, the idea of the currency was published on a white paper that explained how the currency would function.

How does cryptocurrency work?

Cryptocurrencies run through a system of block chains. The record of all transactions are possessed by currency holders.The digital currency is generated by mining.

Mining, in simple words, is the act of receiving coins by solving complex mathematical problems. Once the complication is solved, the user receives digital coins.

The currency can also be bought from brokers, to store on one's personal cryptographic wallet. A user can use these coins for various deals, such as for buying stocks, or even for something as simple as a food item.

Conclusion

The crypto market is an unusual place with great fluctuations possible at any given moment.

With technological advancement, the currency's horizon has expanded significantly, and is likely to grow more in the years to come. 

Nevertheless, investing a lot of money without proper knowledge isn't recommended since the crypto assets can be unpredictable and risky, at times.