What is a cryptocurrency and how does it work?

Cryptocurrencies are digital assets that rely on an encrypted network to execute, verify, and record transactions, independent of a centralized authority such as a government or bank. Cryptocurrency was developed as an alternative to the dollar, and its functions can make it an attractive investment.

What are crypto tokens?

1 Crypto tokens are a type of cryptocurrency that represents an asset or specific use and resides on their blockchain. 2 Tokens can be used for investment purposes, to store value, or to make purchases. 3 Cryptocurrencies are digital currencies used to facilitate transactions (making and receiving payments) along the blockchain. More items...

How to invest in cryptocurrencies?

One of the most straightforward way to invest in cryptocurrencies is by directly purchasing digital assets like Bitcoin, Ethereum and Litecoin. These trade 24 hours a day, 7 days a week on cryptocurrency exchanges. These products can be purchased in fractional amounts, which makes even high-priced cryptos accessible to smaller investors.

What are some examples of cryptocurrency?

Here are a few examples of those: DeFi tokens A new world of cryptocurrency-based protocols that aim to reproduce traditional financial-system functions (lending and saving, insurance, trading) has emerged in recent years.