A cryptocurrency is an electronic asset that employs advanced cryptography to verify transactions and protect against hacking. Bitcoin is the most popular cryptocurrency, founded in 2009. Cryptocurrencies are traded for profit get redirected here by speculators, who increase prices based on predictions of the future of their value. Transactions are recorded in a public ledger referred to as blockchain, which makes it difficult for hackers. Cryptocurrency wallets are protected by passwords and 2-factor authentication processes.

Investors can buy and sell cryptocurrencies on exchanges, businesses that facilitate the buying and selling of cryptocurrencies at current market prices. These exchanges typically charge users fees for withdrawals, deposits, and trading. Fees vary by payment method and platform. Users could lose access to their cryptocurrency investments, if they forget their password or misplace their private keys. Additionally, they run the possibility of government-imposed crackdowns that could hinder their ability to use or sell cryptocurrencies.