What is Cryptocurrency?

Created by TeamPF Pinchforth, Modified on Tue, 29 Nov 2022 at 12:35 PM by TeamPF Pinchforth

In short, cryptocurrency is a digital currency and alternative form of payment that’s created by using encryption algorithms. In order to buy, store, sell or trade any form of cryptocurrency, you must have a crypto wallet. You can choose between a hot wallet and cold wallet to store your crypto; Zelcore is a hot wallet that gives you full, private custody of your keys and assets.

All cryptocurrency transactions happen on a blockchain, a decentralized database or ledger that is shared among the nodes of a computer network and records information about transactions in chronological order. This digital information is collected in groups called blocks, and once they’re full, those blocks are “closed” and added to their respective chain.

Transactions on a blockchain are validated or verified by users, either through Proof of Work (PoW) or Proof of Stake (PoS) mechanisms (more on that later). It’s important to note that once those blocks are closed and added, there’s no changing them.

Read more about different types of digital assets here

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