Your questions on Cryptocurrency answered: From what it is to what you can buy with the currency

AltIndex finance expert explains all you need to know about Cryptocurrency as the industry is tipped to grow to nearly one billion users by 2027.

With the cryptocurrency user base growing 56% year-over-year and 245 million people joining the crypto space, the industry is more popular than ever.

According to data presented by industry data platform AltIndex, nearly one billion people will use Cryptocurrencies as investment or a payment method by 2027.

If you are unsure how the currency works, how to use it or how many people use it, AltIndex answers all your questions.

What is cryptocurrency?

Cryptocurrency is a digital or virtual currency that doesn’t rely on banks or a central authority to verify transactions. Instead, they rely on a distributed ledger technology to record and verify transactions.

The industry doesn’t use physical money, so Cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. Cryptocurrencies exist only in digital form and have no physical counterparts like banknotes or coins, but can be sent and received globally making it accessible to anyone with an internet connection.

How does it work?

At the core of Cryptocurrency is the blockchain, which verifies and records transactions. Instead of relying on a central authority like a bank or government, it is maintained by a network of computers.The blockchain is made up of a chain of blocks containing a list of transactions linked together in chronological order. Once a translation has been added, it is almost impossible to alter or delete.

How do you get cryptocurrency?

The most common way to acquire Cryptocurrency is using exchanges, which allows you to buy, sell and trade different types of currency. You can invest in crypto in a number of different ways including buying currency directly, investing in Cryptocurrency companies and investing in Cryptocurrency-focused funds.

Before you can use crypto you need a digital wallet to store, send and receive. To send crypto to someone you need that person’s wallet address.

When was it created?

The first Cryptocurrency was created in January 2009 by an anonymous group by an anonymous person or group under the pseudonym Satoshi Nakamoto, whose actual identity has never been verified. The software released around 21 million Bitcoins following its release to the public.

What are the different types?

Bitcoin was the first and most well-known Cryptocurrency. Since then thousands more Cryptocurrencies have been created. Some of the most popular include Ethereum, Cardano, Litecoin, Solana, Dogecoin, Shiba Inu and Stablesoins.

What can you buy with crypto?

Hundreds of retailers now accept digital currency, including online retailers such as Shopify. You can also book flights and hotels through websites including Expedia. Food and drink can also be bought as some restaurants, bars and cafes accept the currency.

Real estate in some countries can even be bought using Cryptocurrency, while one of the most common uses is investing.

How many people use crypto currencies?

According to data from Statista, the crypto market has more than doubled in the past two years. In 2023, around 673 million people will be involved in the industry. Just four years ago, just 57 million people used cryptocurrency.

Some countries have banned the use of Cryptocurrency completely, whilst some have placed an implicit ban on its use. Those with a complete ban include Qatar, Saudi Arabia and China.