How are cryptocurrency coins created?

How exactly coins are created depends on what is defined by a given cryptocurrency’s code. For example, instead of mining or mining alone, a cryptocurrency may create some tokens upon launch as developer rewards, or a cryptocurrency may reward tokens as interest to holders of a token. Cryptocurrency is software.

What is cryptocurrency?

Crypto Basics: Cryptocurrency is a new kind of internet money. You can use it to buy things online, and you can send it instantly to other users anywhere in the world, at very low cost, needing nothing more than a smartphone and an internet connection.

What is crypto mining?

In short, crypto mining is how new units of cryptocurrency —usually called coins—are created. As you can imagine, this type of mining doesn’t involve callused hands gripping pickaxe handles. Instead, it’s computer processors that do all the hard work, chipping away at complex math problems.

What is an example of a cryptocurrency?

For example, instead of mining or mining alone, a cryptocurrency may create some tokens upon launch as developer rewards, or a cryptocurrency may reward tokens as interest to holders of a token. Cryptocurrency is software. Every function, from how transactions are recorded to how data is stored, is dictated by code.