Cryptocurrencies

Cryptocurrencies are digital money systems that let you receive, send, or store value like cash, without a third party, like a bank or credit card company. Bitcoin was the first truly successful cryptocurrency. It was started in 2009. Today there are over 5000 different cryptocurrencies like Ethereum, Ripple, and Litecoin.

Because digital money is like a computer file which can be copied or tampered with, we needed banks to keep track of everyone’s money and make sure no one was cheating the system. Bitcoin solved the problem of having to rely on a third party with something called blockchain technology, which makes all transactions and accounts public, but keeps all personal details private. Since all the account balances are public, it makes scamming the system practically impossible.

All cryptocurrencies let you trade money without a third party. This puts you in change and takes the power away from traditional middlemen like banks, governments, and corporations. Cryptocurrencies can be used anywhere in the world by anyone at all. All you need is an internet connection.

Systems made to trade value, like money have traditionally been controlled by a central authority, a bank or government for instance. This makes them centralized. Most cryptocurrencies aren’t controlled by any one source. This makes them decentralized. Having no central authority in control makes trading cryptocurrencies faster, cheaper, and more secure than traditional currency.