08 / 01 / 17

Cryptocurrency Explained- What It Is, and How It Works

As many things in our world transition to becoming digital, so is our money. Terms like cryptocurrency, Bitcoin, and Etherium have become major buzz words in the payments world, and they are the next evolution of money. Below we explain what cryptocurrency is, how it works, and how to get started with it.

What is Cryptocurrency?

Cryptocurrency, also called digital currency, is a digital coin you can send through the internet. Digital currency represents value that is not issued by a central bank or government, but is accepted by people and merchants as a means of payment for goods or services.

There are currently more than 900 cryptocurrencies available over the internet, and new cryptocurrency can be created any time.? Some of the bigger digital currency players you may have heard of include Bitcoin, Ripple, Etherium, Litecoin, Peercoin, and Namecoin.

How Cryptocurrency Works

Cryptocurrencies can be bought at online providers using a credit card or debit card. Once you own digital currency, they behave like physical gold coins. They possess value and trade just like if they were nuggets of gold in your pocket.

Digital currency is traded from one personal ?wallet? to another. A wallet is a small personal database stored on your smartphone, computer, or in the cloud.

Digital currency can be used to purchase goods and services online, or you can hold on to them in hopes that their value increases over time. Some companies that currently accept Bitcoin as a form of payment include, but are not limited to, WordPress, Overstock.com, Microsoft, Zynga, Expedia, Tigerdirect, OkCupid, Shopify, and many more.

How To Buy Digital Currency

Digital currency can be purchased online through exchanges, or businesses that specialize in cryptocurrencies. The most accessible and well-known cryptocurrency exchange is Coinbase, though they only work with Bitcoin, Litecoin, and Ethereum as of right now.

Exchanges also offer helpful services like wallets, which you will need in order to store your currency. While these exchanges often take a fee in exchange for use of their services, the fee is typically small.

Aliant: Now Offering BitPay

Here at Aliant, we strive to provide the latest payments technology to help merchants run their businesses effectively. We?re proud to now offer BitPay, an automated payment processing system for the bitcoin currency. To learn more, contact us or call 888-638-6103.

Have you invested in digital currency yet? Tell us which one in a comment!?

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