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Trading and Investment Terms


A cryptocurrency can be defined as a virtual or digital currency that is protected by cryptography, which makes it nearly impossible for anyone to counterfeit it or double-spend it.


Most of the cryptocurrencies are decentralized systems created on the blockchain technology.


At its most elementary level, blockchain is just a chain of blocks.


Blockchain technology works in a quite interesting way. Information is stored in each block and a chain connects them all. Now a block contains 3 sections of data.


1. Data about cryptocurrencies, such as price. When a block reaches a specific number of approved transactions, a new block is created.


2. A hash code. A hash is a string of numbers and letters. Every time a change happens, a new hash is made.


3. Hash of the previous block. Hashes are cryptographic codes generated by special algorithms.


Blockchain can be explained as a decentralized and distributed ledger implemented by a unique network of PCs.


A characterizing highlight of cryptocurrencies is that they are usually not issued by any central authority like Reserve Bank, which theoretically makes them immune to government interference or manipulation.


Cryptocurrencies are frameworks that allow for the safe and privacy focused payments online which are denominated in terms of digital tokens, and are represented by ledger entries internal to the framework.


"Crypto" refers to the different encryption algorithms and cryptographic methods that secure these entries, like elliptical curve encryption, public-private key pairs, and hashing functions.

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