A cryptocurrency is an electronic asset that utilizes advanced encryption to https://www.365binaryoptionreviews.com/are-special-training-courses-for-mastering-data-rooms-due-diligence-required/ validate transactions and protect against hacking. The most well-known cryptocurrency is Bitcoin that was created in 2009. Cryptocurrencies are traded for profit by speculators, who drive prices skyward based on predictions regarding the future value of these currencies. Transactions are recorded in a public ledger, referred to as blockchain, which is difficult for hackers to access. Cryptocurrency wallets are secure by passwords and 2-factor authentication.

Exchanges are companies that facilitate the purchase and sale of cryptocurrencies based on current market prices. These exchanges typically charge fees to users for withdrawals, deposits and trading. Fees are based on payment method and platform. The risks for users include losing access to their cryptocurrency investments if they forget a password or lose their private keys, and the risk of government regulatory crackdowns that could make it difficult to sell or use cryptocurrencies.