Cryptocurrency can be confusing.  There are some investors that claim you could buy for as little as $20 and your purchase could increase in value to over a million dollars in the next few years. Other investors call it a scam and yet others claim it is just a fad that will pass. So, what is Cryptocurrency, how does it work, and what are the differences in some of the different types.

What is cryptocurrency?

• Cryptocurrency is a payment system that is all digital and does not rely on banks to verify your transactions. It enables anyone to send and receive payments without having to actually carry physical money. Cryptocurrency is stored in digital wallets in an online database that can be accessed on a laptop or phone.

How does cryptocurrency work?

• Cryptocurrency runs on a public ledger called blockchain and it holds a record of all transactions held by currency holders. Cryptocurrency is created by mining that involves computer power to solve complicated mathematical problems to generate coins. You can also buy currencies from brokers and then store them in a cryptographic wallet.

Different types of cryptocurrencies

• Bitcoin
• Ethereum
• Litecoin
• Ripple