Tokenpedia
Cryptocurrency is a virtual currency secured by cryptography.
Blockchain is a network system among computers.
The majority of the cryptocurrencies are decentralized by blockchain technology.
The blockchain has a record-keeping system that allows cryptocurrencies to be decentralized.
As merit, cryptocurrencies can not be controlled or manipulated by a centralized person or government.
In a blockchain system, all transactions are verified by a network of thousands of computers called miners.
Cryptocurrencies allow you to pay online using virtual tokens in a safe and decentralized manner.
Cryptocurrencies, together with blockchain technology, have significant potential.
This potential ranges from finance to voting systems.
Additionally, cryptocurrencies transaction costs are much lower than traditional currencies.
To buy cryptocurrencies, you need an online wallet application.
You can create an account on the application to receive and hold a cryptocurrency.
Money is a durable, divisible, portable, fungible medium of exchange.
Because cryptocurrencies have these properties, they are considered money.
Moreover, as the cryptocurrency supply is limited, like gold or silver, it is not fiat but real money.
The users are individuals or legal entities who submit transactions into the blockchain network for validation and process.
The equivalent banking operation is the use of online banking to send money.
However, the main difference is the absence of centralized authority.
Suppose a wallet ID or file is lost without having backups, then, unfortunately, the coins are lost forever.
The blockchain system protects cryptocurrencies.
The blockchain network is significantly extended. It is much easier and cost-efficient to follow the protocols than hacking the system.
Since cryptocurrencies are growing fast, buying and holding them is a reasonable way of earning money—cryptocurrencies' value increases in the overall trend.
The legal status of cryptocurrencies varies from state to state. Yet, the majority of countries accept cryptocurrencies as a legal system.
The Internal Revenue Service considers cryptocurrency to be property.
Therefore, taxpayers are required to report their virtual transactions as US dollars on their tax returns.