What Are Cryptocurrencies?

Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.

We cover a lot of complex topics here at cryptofal.com. Some of them are focused on trading, mining, protocol updates, etc. These pieces can be fairly in-depth and detailed, however for beginners, some of those concepts may be difficult to understand. So, let's refresh the very basics.

What is Crypto?

Investopedia defines cryptocurrency as:

“…a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.”

Crypto (short for cryptocurrencies) use blockchain technology to create a public ledger of transactions across the globe. They allow users to send digital currencies using blockchain, cryptographic technology, and some other technologies as well. These tokens are sent from one wallet (think of an account) to another wallet. Cryptocurrencies can be purchased on cryptocurrency exchanges.

These public ledgers that blockchain technologies provide keep a permanent record of every transaction that’s occurred on the blockchain. From the amount that was sent, to the addresses it was sent to, there’s tons of information that blockchain tech can provide. These blockchain transactions can then be viewed by anyone on earth at any time.

While blockchain technology is not limited to just cryptocurrency, it is a huge part of why the space can revolutionize finance.

This type of transparency does not exist in traditional fiat markets. While there are some cryptocurrencies that are meant to maintain the privacy of its users, most have blockchains that allow anyone to access the transaction information if they have the hash (transaction) ID.

On top of cryptocurrency’s usage of a public ledger in a majority of projects, cryptocurrency also provides a level of accessibility that’s unprecedented in finance.

To access a cryptocurrency wallet, all you need is a phone, tablet, or computer. With minimums as low as $5, investors of all incomes could find some benefits in the space. This type of accessibility is great for everyone, from the every-day investor to the unbanked, to the seasoned financier. It creates a wildly more inclusive financial space with a signficantly larger potential target audience.