What is cryptocurrency and how does it work?

Cryptocurrency is decentralized digital money that’s based on blockchain technology. You may be familiar with the most popular versions, Bitcoin and Ethereum, but there are more than 9,000 different cryptocurrencies in circulation. How Does Cryptocurrency Work? A cryptocurrency is a digital, encrypted, and decentralized medium of exchange.

How do you get cryptocurrency?

For most people, the easiest way to get cryptocurrency is to buy it, either from an exchange or another user. Why are there so many kinds of cryptocurrency? It’s important to remember that Bitcoin is different from cryptocurrency in general.

What cryptocurrencies are available on NerdWallet?

NerdWallet has created guides to some widely circulated cryptocurrencies, including Bitcoin and some altcoins, or Bitcoin alternatives: Bitcoin is the first and most valuable cryptocurrency. Ethereum is commonly used to carry out financial transactions more complex than those supported by Bitcoin.

What is a crypto coin?

These crypto coins have their own blockchains which use proof of work mining or proof of stake in some form. They are listed with the largest coin by market capitalization first and then in descending order.