Digital Currency, known as Crypto, is the new form of money. People will use it to transact and trade with significantly less friction.
How it all works
Crypto coins solves several problems that traditional money has.
- Digital Money can't be physically stolen (you can still get hacked, but we cover that here)
- Easier to Buy/Sell
- No middle men, such as banks and credit card companies
- New systems of exchange
Digital Currency is made using a new technology called Blockchain.
- Blockchain allows you to directly send and receive money by having a copy of the transactions, called a ledger, on a bunch of computers.
- An individual computer on this network can't change/hack the ledger, since the other computers would recognize any changes as false data.
- Blockchain has a lot of applications beyond currency which you can read about here (IBM).
Crypto is Still Brand New
- The US Government is currently debating the regulations and laws that will ultimately make or break this technology's success.
- Also consider, every single currency is a speculative investment that requires research.
Next Up: Learn How to Be Safe
We'll tell you about the most common scams and how your can protect your money!