Cryptocurrency is for kids, too! Here’s what you need to know about what may be the money of the future.
What is cryptocurrency?
Cryptocurrency is a digital form of money that is decentralized. This means there is no government entity that owns, governs or makes rules for cryptocurrency. There is also no physical form of cryptocurrency, like a dollar bill or coin. Cryptocurrency only exists in virtual form.
Cryptocurrency works much like regular money. You can buy and sell it, save it and hope it grows in value. You can also use it to buy things, as long as the vendor accepts cryptocurrency as payment.
Who invented cryptocurrency?
There’s no real answer to this question. In October 2008, a person or group that called itself Satoshi Nakamoto let the public know it is working on a new form of digital currency called Bitcoin. However, no one knows the actual identity of Satoshi Nakamoto.
How many cryptocurrencies are there?
The most famous cryptocurrency is also the original: Bitcoin. It was released in January 2009. Since then, developers have created several thousand other cryptocurrencies. However, there are only a few dozen, at most, that are recognized as a currency and an investment-worthy asset. These include Ethereum, Stellar, Solara, Cardano and Dogecoin.
How does cryptocurrency work?
Most forms of cryptocurrency are created and controlled through a distributed ledger, or blockchain, which serves as a database for financial transactions. All information on crypto transactions are stored electronically in this blockchain.The blockchain lives on any computer that accesses it from around the world.
How much is cryptocurrency worth?
The value of each cryptocurrency is different, and also changes a lot over time. Bitcoin, for example, was worth only $0.0008 when it was first created, and $68,789.63 at its peak in November 2021. Most financial experts agree that crypto is most valuable as an investment.
Can I buy cryptocurrency now?
To purchase cryptocurrency as an investment, you’ll need to create a crypto wallet through a secure investment site, like Coinbase, to hold your cryptocurrency. You may need to be 18 years of age to do this on your own; if you are not yet 18, ask your parents for help.
You’re never too young to learn about cryptocurrency and to start thinking about investing.