A cryptocurrency is digital money used as a form of security using cryptography. In this connection, the technical word cryptography is used to verify who controls what by applying encryption (codes). Combine the two, and your carrier fully controls your digital currency. The phrase "carrier" should be stressed since cryptocurrencies, like actual cash, may be lost. Like $20 dropping out from your bag, losing your crypto wallet's private keys means losing access to money - a crypto wallet is simply a digital piggy bank that'll be directly linked to the blockchain, preserves your private keys, and can't be accessed unless you enter your password. If you forget to copy the personal keys into your wallet, you may not access your wallet if you have damaged your wallet file. Estimated losses have been 3.7 million bitcoins to date.

You may have heard that cryptos are "unhackable," safe, or different, but let's start with the basic technology. We'll begin by looking at the kind and working conditions of blockchains. The distribution system is built on all sorts of cryptocurrencies and is consequently commonly termed as distributed ledgers. In this case, the information is not kept in a single location, but on millions of network machines. Each machine saves the whole or just portion of the blockchain.