This decentralized nature eliminates the need for central authorities, such as banks, and fosters transparency and security in transactions. How Cryptocurrencies WorkAt the core of cryptocurrencies is blockchain technology, a decentralized and distributed ledger that records transactions across multiple linked computers. Cryptocurrencies use consensus mechanisms like proof-of-work (PoW) or proof-of-stake (PoS) to perpetuate transactions and maintain the integrity of the blockchain. Wallets and ExchangesTo engage with cryptocurrencies, users need a digital wallet—a secure digital container for storing private keys used to access and manage their funds. Risks and VolatilityWhile the potential for profit in the cryptocurrency market is alluring, it comes with inherent risks.

Source: Punch December 01, 2023 20:49 UTC