What is a simple explanation of cryptocurrency?

Cryptocurrency is a type of digital asset secured by a database known as the blockchain. Blockchains are designed to ensure privacy and security using complex cryptographic algorithms. Cryptocurrencies have a huge number of potential uses. They can be spent like money, ensure contract transparency, manage supply chains and much more.

How does cryptocurrency make money?

Cryptocurrency prices rise and fall like any other speculative investment, and can be heavily influenced by public announcements and media sentiment. Some coins, like Bitcoin, have a small supply and high demand, which can also affect its value. You might be able to make money with crypto by buying from an exchange and holding it, trading it or earning it, but each method has unique risks attached.

Can you turn cryptocurrency into cash?

Yes, cryptocurrency can be sold via exchanges and brokers for a local currency like {{ data.curName }}s. In some places, you can even use a crypto ATM to convert digital assets directly into cash, though this does attract high fees.

Which cryptocurrency is best?

Unfortunately for investors, there's no such thing. The best cryptocurrency will be whichever you believe has real utility and that suits your personal investment goals. Bitcoin and Ethereum are widely considered to be the "blue chips" of crypto because of their high market cap and proven use-cases. Check out our guide to which cryptos to buy now for a look at what's trending today.

Is cryptocurrency a good investment?

Cryptocurrency can be a good investment if you've conducted extensive research and understand fundamental trading strategies . Investing in a highly volatile asset comes with the potential to magnify your losses as well as your profits, so only invest what you can afford to lose.

Where does money go when you buy crypto?

Money spent on cryptocurrency goes to whoever sold the digital asset, similar to any other exchange of value. This is usually an exchange or broker service, but it can also be a stranger if you've used a decentralized finance or P2P platform.