What is cryptocurrency?
More and more we are hearing about cryptocurrencies, especially Bitcoin. These are online currencies that use blockchain technology and cryptography. These currencies are not managed by a central authority (such as a bank or government), but by a large and decentralized network.
Such a network consists of thousands of machines of participants. Anyone can participate in such a network by connecting a computer to it. Transactions are validated by the network, whereafter all transactions are aggregated and added as a block to the blockchain.
Because each block has a hash of the previous block stored in it, a chain of blocks is created. We call this chain the blockchain. It is impossible to modify the history of a blockchain because doing so would change the hash, creating a break in the chain.
Blockchain is considered one of the most secure technologies in our world. More and more people are switching to using cryptocurrencies, as well as investing in them.
How to invest in cryptocurrencies?
There are several ways you can invest in cryptocurrencies. Many people choose to do this themselves. Yet this is not always a wise choice.
This is because it is important that you have a good understanding of blockchains and cryptocurrencies, before you can invest in them. That’s why more and more people are using a crypto fund, like ProCryptoFund.