Cryptocurrency is a form of digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
What is Bitcoin?
Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source and its design is public, nobody owns or controls Bitcoin and everyone can take part.
What is Ethereum?
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is open-source, public, and permissionless. Ether, the cryptocurrency of the Ethereum network, is traded on public exchanges.
What is a Cryptocurrency Exchange?
A cryptocurrency exchange is a digital marketplace where traders can buy and sell cryptocurrencies using different fiat currencies or altcoins. Most exchanges also allow traders to store their cryptocurrencies in online wallets.
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a digital wallet that stores cryptocurrencies and allows users to send and receive digital currencies. Wallets can be either software or hardware-based. Software wallets are hosted on a computer or mobile device, while hardware wallets are physical devices that store cryptocurrencies offline.
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