What is crypto money and how does it work?
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.
Is crypto money real money?
Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger.
Is crypto the same as money?
Cash and crypto have similarities. They both have a market value and some cryptocurrencies, like bitcoin and ethereum, can act as a medium of exchange—but beyond that, they're quite different. Cash is issued by a government. Crypto is not.
Is crypto a safe currency?
Despite its decentralized nature, transactions on most cryptocurrency networks are very secure — as long as crypto users take precautions. The underlying blockchain technology is inherently secure.
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