Why cryptocurrencies? Find out how crypto works



Cryptocurrency existed as a theoretical construct long before the first digital alternative currencies debuted. Early cryptocurrency proponents shared the goal of applying cutting-edge mathematical and computer science principles to solve what they perceived as practical and political shortcomings of “traditional” fiat currencies.

Decentralized control

Crypto currencies’ supply and value are controlled by the activites of the users and highly complex protocols built into their governing codes, not in the decisions of central banks or other regulatory authorities. Importantly, cryptocurrencies can be exchanged for fiat currencies, meaning each has a variable exchange rate with major world currencies such as U.S. dollar, british pound, European euro, Japanese yen.

Benefits and Drawbacks

Cryptocurrency users enjoy benefits that are not available to the users of fiat currencies such as U.S. dollar, for instance, a government can easily freeze a bank account at its jurisdiction, it is very difficult for it to do the same with funds held in crypto currency.

On the other hand, cryptocurrencies come with risks such as illiquidity and value volatility.


A cryptocurrencies’ blockchain is the master ledger that records and stores all transactions and activity. Identical copies of the blockchain are stored in every node of the cryptocurrency’s software network, run by individuals known as MINERS, that continually record and authenticate cryptocurrency transactions. Blockchain prevents manipulation of cryptocurrency code to allow the same currency units to be duplicated and sent to multiple recepients.


Miners serve as record-keepers, use highly technical methods to verify the completeness, accuracy and security of currencies.
Miners work periodically creates new copies of the blockchain, adding recent, previously unverified transactions that are not included in any previous blockchain copy- effectively completing those transactions.
Mining is a built-in quality control and policing mechanism for cryptocurrencies. Because they’re paid for their efforts, miners have a financial stake in keeping accurate, up-to-date transaction records – thereby securing the integrity of the system and the value of the currency.


Cryptocurrency users have “wallets” with unique information that confirms them as the temporary owners of their units. Whereas private keys confirm the authenticity of a cryptocurrency transaction, wallets lessen the risk of theft for units that aren’t being used. Wallets used by cryptocurrency exchanges are somewhat vulnerable to hacking.
Wallets can be stored on the cloud, an internal hard drive or external storage device.

Cryptocurrency Exchanges

Cryptocurrency exchanges were the first and remain the most important businesses built around crypto protocols. Their job is to make the business model of belief work. Yet they are more than just utility platforms for acquiring, selling, and gambling with crypto. Exchanges represent some of the most iconic brands in the crypto sp


Beginning with the largest, the top 10 are currently Bitcoin ($BTC), Ethereum ($ETH), XRP ($XRP), Tether ($USDT), Bitcoin Cash ($BCH) , Litecoin ($LTC), EOS ($EOS), Binance Coin ($BNB), Bitcoin SV ($BSV) and Tezos ($XTZ).

Bitcoin (BTC) $128bn

Ethereum (ETH) $19.4bn

XRP (XRP) $8.22bn

Tether (USDT) $6.4bn

Bitcoin Cash (BCH) $4.1bn

Bitcoin SV (BSV) $3.4bn

Litecoin (LTC) $2.6bn

EOS (EOS) $2.4bn

Binance Coin (BNB) $