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How Does Cryptocurrency Work?

Cryptocurrency operates on a decentralized digital technology called blockchain. It works through a network of computers

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that validate and record transactions, ensuring transparency and security.
Cryptocurrencies, such as Bitcoin and Ethereum, use cryptographic principles to secure

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transactions and control the creation of new units. Transactions are verified by miners, who solve complex mathematical puzzles to add blocks of transactions to the blockchain.

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Each participant in the cryptocurrency network has a unique cryptographic address, which acts as a digital wallet. This address is used to send and receive funds

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Each participant in the cryptocurrency network has a unique cryptographic address, which acts as a digital wallet. This address is used to send and receive funds

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Transactions are broadcasted to the network, and miners confirm their validity, preventing double spending and fraud.
The blockchain, 

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a public ledger, stores all transaction information, making it accessible to anyone in the network. This decentralized nature eliminates the need for intermediaries like banks.

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The value of cryptocurrencies is determined by supply and demand dynamics in the market.

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Factors such as adoption, investor sentiment, and regulatory developments can impact their prices.

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Overall, cryptocurrencies enable secure, borderless, and peer-to-peer transactions, offering an alternative to traditional financial systems.

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