what is cryptocurrency

What is cryptocurrency

The value of coins changes daily, and even a popular, well-established coin can experience massive fluctuations. As of February 2025, the top cryptocurrencies based on market capitalization (the current value of a coin multiplied by the number of that coin in circulation) are :

Immutable means that something can never be altered https://gamble-online-aus.org/. The transactions that enter a blockchain, therefore, can never be altered or tampered with. This makes both double-spending and counterfeiting almost impossible – a regular problem with fiat currencies such as the US dollar.

Some cryptocurrencies offer their owners the opportunity to earn passive income through a process called staking. Crypto staking involves using your cryptocurrencies to help verify transactions on a blockchain protocol. Though staking has its risks, it can allow you to grow your crypto holdings without buying more.

What is cryptocurrency

Transaction fees (sometimes also referred to as miner fees or gas fees) for cryptocurrency depend mainly on the supply of network capacity at the time, versus the demand from the currency holder for a faster transaction. The ability for the holder to be allowed to set the fee manually often depends on the wallet software used, and central exchanges for cryptocurrency (CEX) usually do not allow the customer to set a custom transaction fee for the transaction. Their wallet software, such as Coinbase Wallet, however, might support adjusting the fee.

Cryptocurrency is a relatively risky investment, no matter which way you slice it. Generally speaking, high-risk investments should make up a small part of your overall portfolio — one common guideline is no more than 10%. You may want to look first to shore up your retirement savings, pay off debt or invest in less-volatile funds made up of stocks and bonds.

The market capitalization of a cryptocurrency is calculated by multiplying the price by the number of coins in circulation. The total cryptocurrency market cap has historically been dominated by bitcoin accounting for at least 50% of the market cap value where altcoins have increased and decreased in market cap value in relation to bitcoin. Bitcoin’s value is largely determined by speculation among other technological limiting factors known as blockchain rewards coded into the architecture technology of bitcoin itself. The cryptocurrency market cap follows a trend known as the “halving”, which is when the block rewards received from bitcoin are halved due to technological mandated limited factors instilled into bitcoin which in turn limits the supply of bitcoin. As the date reaches near of a halving (twice thus far historically) the cryptocurrency market cap increases, followed by a downtrend.

Nvidia has asked retailers to do what they can when it comes to selling GPUs to gamers instead of miners. Boris Böhles, PR manager for Nvidia in the German region, said: “Gamers come first for Nvidia.”

In 2018, an increase in crypto-related suicides was noticed after the cryptocurrency market crashed in August. The situation was particularly critical in Korea as crypto traders were on “suicide watch”. A cryptocurrency forum on Reddit even started providing suicide prevention support to affected investors. The May 2022 collapse of the Luna currency operated by Terra also led to reports of suicidal investors in crypto-related subreddits.

everything you need to know about cryptocurrency

Everything you need to know about cryptocurrency

There are thousands of Bitcoin alternatives called altcoins. Cryptocurrencies like Ethereum and Ripple have improved upon Bitcoin’s original model or created differences in their currencies to support niche uses.

Look into at first, see if there’s a legitimate reason why it’s pumping. Maybe it’s pure speculation because Elon Musk said he likes it, or maybe it’s real FOMO because a huge partnership, or adoption of it from a big name was mentioned from a credible source. If you see no logical reasons why it’s pumping, it’s probably a pump and dump. Funny names from Low market cap coins like “Super LTC dark” sold on shitcoin exchange #927182 from a country you never heard of is not a real thing. Stay away from it.

Most regulated brokers, such as Markets.com, are transparent about costs. They include a minimum spread per unit in US dollars (USD) which makes it easy to figure out exactly what you are being charged.

A “soft fork” change in Bitcoin’s transactions is intended to increase privacy and improve scalability. A hard fork constitutes a change to a blockchain that’s so fundamentally different from the original that it becomes a new kind of altcoin.

If you recognize the meme that Dogecoin (DOGE) is based on, you’ll probably smile. This altcoin started as a joke, but it took on a legitimate life of its own, thanks to its friendly community of users.

Some cryptocurrencies are highly centralized, with someone — usually the organization that created the process/software — making decisions about how much currency is created and how it is used. Other types are very decentralized, controlled only by how and where people are willing to use them.