A cryptocurrency is a digital currency that is secured by cryptography, which makes it nearly impossible to counterfeit. Many cryptocurrencies are decentralized networks based on blockchain technology - a distributed ledger enforced by a network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
The first cryptocurrency was Bitcoin, which still remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions and specifications.
There are many ways to obtain cryptocurrencies. The most obvious is by purchasing cryptocurrencies with real money. This can be done at a site such as Coinbase.
Coinbase has been around since 2012 so it is a trusted site. You can purchase a variety of different cryptocurrencies and it also acts as a wallet to store them until you wish to use them.
Another way to obtain cryptocurrency is to use a faucet.
A faucet is a site where you can claim a small amount of cryptocurrency every hour of so by completing a verification question to prove you are human! All you need is an email address and you can start claiming coins. Many of these sites offer other features such as multiplier games, lotteries and bonuses whilst others offer surveys and opportunities to watch ads and videos to earn extra.
A cryptocurrency exchange platform matches buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell cryptocurrencies by inputting either a market order or a limit order. When a market order is selected, the trader is authorizing the exchange to trade their coins for the best available price in the online marketplace. With a limit order set, the trader directs the exchange to trade coins for a price below the current ask or above the current bid, depending on whether they are buying or selling.
To transact in cryptocurrency on an exchange, a user has to register with the exchange and go through a series of verification processes to authenticate their identity. Once the authentication is successful, an account is opened for the user who then has to transfer funds into this account before they can buy coins.