What is cryptocurrency?

You have probably asked yourself many times what a cryptocurrency is. We explain what is behind this in this practical tip.

Cryptocurrency - that's behind the name

• A cryptocurrency is money in digital form. You cannot hold this currency in your hand, but only save it digitally.
• Digital money is based on cryptographic processes so that it can be handled particularly securely and quickly. In the future, it should make payment processes easier and more secure.
• Cryptocurrency is stored in a so-called "wallet" or purse. It is a digital wallet that is on your computer, smartphone or in the cloud.
• Unlike normal money, cryptocurrency is not managed by a central bank. The idea is to decentralize money so that no one has control over a currency alone.
• The best known cryptocurrency is Bitcoin. However, there are now numerous other coins that are faster and better suited as a means of payment. Among them are for example Ethereum and Litecoin.

In the next practical tips, we will show you how to make money online with cryptocurrency and a comparison between Bitcoin and Ethereum.