A cryptocurrency (or crypto currency or crypto for short) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It typically does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction databzase. Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. Since the release of bitcoin, other cryptocurrencies have been created.
"Cryptocurrency will become the 12th sector of the economy." - Kevin O'Leary (Mr. Wonderfull)
An altcoin is a cryptocurrency, or virtual currency, alternative to Bitcoin. Each altcoin operates according to its own rules. They are cryptocurrencies that use a technology called blockchain that allows secure peer-to-peer transactions. Altcoins build on the success of Bitcoin by slightly changing the rules to appeal to different users.
Bitcoin | BTC
Ethereum | ETH
Ripple | XRP
Litecoin | LTC
Dogecoin | DOGE
Solana | SOL
Polygon | MATIC
Custodial vs. Non-Custodial Wallet
A Custodial Wallet is defined as a wallet in which the private keys are held by a third party. Meaning, the third party has full control over your funds while you only have to give permission to send or receive payments.
A Non-Custodial Crypto Wallet is a type of Blockchain wallet that lets you be your own bank. This implies that users have full control over their funds and on the associated private key.