Cryptuschain

What is cryptocurrency?
A person places a digital coin into their phone.
Bitcoin, Ethereum, and other digital currencies are changing how we invest, manage money, and conduct financial transactions. Explore this beginner’s guide to understand more.
At its most basic level, cryptocurrency is digital money that is often decentralized and created for use on the internet. Bitcoin, launched in 2008, was the first cryptocurrency and continues to be the largest, most influential, and most recognized. Since its creation, Bitcoin and other cryptocurrencies like Ethereum have emerged as digital alternatives to traditional government-issued money.
The leading cryptocurrencies by market value include Bitcoin, Ethereum, Tether, and Solana. Other well-known digital currencies include Tezos, EOS, and ZCash. While some of these currencies share similarities with Bitcoin, others are built on different technologies or have added features that allow them to do more than just transfer value.
Cryptocurrencies enable the transfer of value online without the need for a middleman such as a bank or payment processor, allowing instant global transactions, 24/7, with low fees.
These digital currencies are usually not controlled or issued by any government or central entity. Instead, they are governed by peer-to-peer networks of computers running free and open-source software. Typically, anyone can join in if they wish to participate.
Without a bank or government, how is cryptocurrency kept secure? The answer lies in blockchain technology.
A cryptocurrency blockchain works like a bank’s ledger or balance sheet. Each currency has its own blockchain, which acts as a constantly updated, publicly verified record of every transaction ever made using that currency.
Unlike a traditional bank ledger, a crypto blockchain is distributed across the entire network of users.
No single organization, government, or intermediary controls it; anyone can join. The blockchain technology is a revolutionary advancement, made possible by decades of work in computer science and mathematics.
Most importantly, cryptocurrencies give individuals full control over their assets.
Brian Armstrong, CEO of Coinbase, Envisions Cryptocurrency’s Future
Core Concepts
Transferability
Crypto makes global transactions as easy as paying with cash at your local store.
Privacy
When making payments with cryptocurrency, you don’t need to provide personal information to the merchant. This keeps your financial data safe from third parties like banks, payment platforms, advertisers, and credit bureaus. Because there is no need to share sensitive details, your financial information is far less likely to be compromised or stolen.
Security
Cryptocurrencies like Bitcoin, Ethereum, Tezos, and Bitcoin Cash rely on blockchain technology, which is continually verified by massive amounts of computing power.
Portability
Since your cryptocurrency isn’t tied to a specific financial institution or government, it remains accessible no matter where you are or what happens to the global financial system.
Transparency
Every transaction within networks like Bitcoin, Ethereum, Tezos, and Bitcoin Cash is publicly recorded, with no exceptions. This ensures there’s no opportunity for transaction manipulation, sudden changes to the money supply, or rule alterations.
Irreversibility
Unlike credit card payments, cryptocurrency transactions can’t be undone. For merchants, this significantly reduces the risk of fraud. For consumers, it lowers costs by eliminating some of the arguments that credit card companies use to justify high processing fees.
Safety
The Bitcoin network, for example, has never been hacked. Cryptocurrencies are inherently safe because they are permissionless, and the core software is open-source, which allows cryptographers and computer scientists to continually scrutinize the networks for security flaws.

Why is cryptocurrency the future of finance?
Cryptocurrencies are the first real alternative to the traditional banking system and offer powerful advantages over older forms of payment and assets. Think of them as the next generation of money—digital cash that has the potential to become the fastest, most accessible, most cost-effective, and most universally accepted way to exchange value that the world has ever seen.
Cryptocurrencies can be used for transactions, investments, or savings, but the key difference is that they are not controlled by any central authority. Regardless of what happens to governments, your cryptocurrency remains safe.
Digital currencies provide financial opportunities equally to everyone, no matter their country of origin or residence. As long as you have access to a smartphone or other connected device, you can participate in the crypto ecosystem.
Cryptocurrencies create new avenues for enhancing economic freedom worldwide. Their essential borderless nature promotes free trade even in countries where financial freedom is restricted. In regions struggling with high inflation, cryptocurrencies provide an alternative to failing national currencies for both saving and making payments.
Crypto can be approached in many different ways, from long-term holding (like Bitcoin, which has seen its value rise from nothing in 2008 to thousands of dollars per coin) to more active trading strategies focused on price fluctuations.
For those seeking stability, USD Coin offers a 1:1 peg to the U.S. dollar, which means its value remains constant, making it a safer choice for those interested in crypto without volatility. Coinbase users who hold USDC can earn rewards, making it an attractive option compared to a traditional savings account.
Cryptocurrencies provide access to equal opportunities, no matter where you live or were born.

Why invest in cryptocurrency?
Platforms like Coinbase have made buying and trading cryptocurrencies straightforward, secure, and rewarding.
Opening an account takes only a few minutes, and you can easily buy cryptocurrency using a debit card or bank transfer.
You can invest small amounts (or larger sums) of crypto, as most platforms allow fractional purchases. For instance, you can buy $25 worth of Bitcoin.
Many digital currencies, including USD Coin and Tezos, allow users to earn rewards just by holding them.
On Coinbase, you can earn up to 1% APY on some currencies, which is higher than most traditional savings accounts.
By staking Tezos on Coinbase, you can earn up to 5% APY.
Unlike stocks or bonds, you can quickly transfer your cryptocurrency to others or use it for purchases.
Millions of people invest in Bitcoin and other digital currencies as part of their portfolios.

What is a stablecoin?
USD Coin is an example of a stablecoin, a type of cryptocurrency that is designed to have a stable value. Stablecoins maintain the benefits of crypto (quick global transactions, security, and privacy) while offering price stability similar to fiat currencies.
Stablecoins achieve this by pegging their value to an external asset, such as the U.S. dollar or even gold.
This helps keep their value from fluctuating significantly from day to day, making them more reliable for day-to-day transactions. It also means stablecoins can act as a safe alternative for savings, much like a traditional savings account.

Key Question
What is the future of cryptocurrency?
Experts often discuss how cryptocurrency can solve some of the biggest problems in the current financial system, such as high fees, identity theft, and economic inequality. These are issues that cryptocurrencies could address, and the technology behind them also has far-reaching applications outside of finance, from revolutionizing supply chains to building a new, decentralized internet.

How does cryptocurrency work?
Bitcoin may be the first and most well-known cryptocurrency, but there are thousands of others. Some, like Litecoin and Bitcoin Cash, share the same fundamental principles as Bitcoin, while others explore new ways of processing transactions. Ethereum, for example, can run applications and create smart contracts. All cryptocurrencies, however, are based on blockchain technology, which is key to understanding how they work.
A blockchain is essentially a list of transactions that anyone can view and verify. The Bitcoin blockchain, for example, keeps track of every transaction involving Bitcoin. This public ledger allows people to send and receive crypto without the need for a third-party intermediary like a bank.
Blockchain technology is also being applied in many other fields, including healthcare, privacy enhancement, supply chain management, and more.
The concept of both Bitcoin and its blockchain technology was introduced in 2007 by an individual or group under the pseudonym Satoshi Nakamoto.
The blockchain is decentralized, with the record stored across all computers in the network, ensuring there’s no central vault that can be hacked or manipulated.

Key Concept
Cryptocurrency uses public-private key cryptography to securely transfer ownership of digital assets. A private key is a highly secure password that allows you to send crypto without sharing it with anyone. The associated public key can be shared openly to receive crypto. From the public key, it’s nearly impossible for anyone to determine your private key.

What is cryptocurrency mining?
Cryptocurrencies are typically “mined” via decentralized networks of computers. However, mining does more than just create new coins; it is also the process that updates and secures the network by verifying transactions and adding them to the blockchain.
While anyone with a computer and internet connection could technically mine, it’s often not profitable unless you have access to cheap electricity and powerful hardware. Most mining today is done by specialized companies or mining pools, where many participants combine their computing power.
In the Bitcoin network, for example, miners compete in a lottery-like process to solve complex mathematical problems, which verifies new transactions and adds them to the blockchain. The winner receives new Bitcoin as a reward.

Key Question
Where does cryptocurrency get its value?
The value of cryptocurrency, like any asset, is determined by supply and demand.
Supply refers to the total amount of cryptocurrency available, while demand refers to how many people want to own it and how much they are willing to pay for it. The value of a cryptocurrency depends on both of these factors.
In addition to these basic economic principles, cryptocurrencies have value because they offer unique advantages like fast and secure transactions. Many users enjoy using crypto to shop, donate, or gift money, further contributing to its value.
How to buy Bitcoin and other cryptocurrencies
The simplest way to acquire cryptocurrencies is through an online exchange like Coinbase.
On Coinbase, you can buy major cryptocurrencies like
Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), or newer coins like Stellar Lumens or EOS.
You don’t need to buy a full coin either; you can purchase a fraction. For example, you can buy $25 worth of Bitcoin.

How do you store cryptocurrency?
Storing crypto is like keeping cash, meaning it’s important to keep it secure. There are various ways to store crypto, both online and offline, but using a trusted platform like Coinbase is the easiest way to ensure security.
Coinbase allows users to securely store, send, and receive cryptocurrency from any device, whether computer, tablet, or mobile.
If you wish to transfer funds to a bank account, Coinbase makes the process easy. While the transfer might take a few days, it works much like any traditional bank transfer.

What can you do with cryptocurrency?
There are many ways to use cryptocurrency, and the possibilities keep growing. Some of the most common uses include:
Shop: Over 8,000 merchants worldwide accept cryptocurrency via Coinbase Commerce.
Donate to causes: Many charitable organizations accept Bitcoin donations, making it easy to contribute to your favorite causes.
Gift it: Cryptocurrency is an exciting gift for tech-savvy friends and family.
Tip creators: Many online content creators share Bitcoin addresses for tips. If you enjoy their work, you can show appreciation with a small crypto donation.
Explore new technologies: For example, Orchid is a VPN that combines digital currency with online privacy protection, running on the Ethereum network.