What is Cryptocurrency? | Blockchain in finance | Strategies for Traders


Welcome to this course. In the first section, we will understand the basics of cryptocurrencies. Before we get started, let us discuss briefly what cryptocurrencies are. A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. All transactions done using a cryptocurrency are authenticated by a network of peers who maintain that currency. Once all the peers on the network confirm the private key and validate the transaction, the transaction is recorded. As long as a transaction is unconfirmed by its peers, it is said to be pending and it can be forged. But once a transaction is confirmed, it is set in stone. It cannot be changed, it can‘t be reversed, and it becomes a part of the blockchain containing the records of all historical transactions of that currency. There are many cryptocurrencies, or coins as they are sometimes called in the market. The current top 5 cryptos by market cap are shown here. There are more than 200 cryptocurrencies in vogue since cryptocurrencies are one of the most volatile markets, these rankings might keep changing. Before you start trading cryptocurrencies please check if buying and selling cryptocurrency is legal in the country you live in. You can visit some of the digital wallet sites to confirm the latest status. To start cryptocurrency trading, you first need to understand what a cryptocurrency wallet is. A cryptocurrency wallet or E-wallet acts as a personal ledger of transactions and allows you to send and receive coins. Online Wallets provide a simple interface where one can login and transfer their cryptocurrency to another party. To send money to another account one would need to know the address or the alphanumeric value associated with the receiver’s wallet. This value is sometimes known as the hash address. That is all for this video. In the next video, you will learn more about wallets and converting cash into cryptocurrency. Good Luck.

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