Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in a digital wallet. The usual exchange is done with someone online through a phone or computer, without using an intermediary like a bank.

Cryptocurrencies are not regulated, which carries risk of market volatility and loss for investors. However, the security risks and risk of fraud when using Bitcoin and other cryptocurrencies are vastly reduced. Also, due to the highly secure nature of transactions, purchases cannot be traced. There are no intermediaries involved in a transaction.

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions.

Most investors buy coins such as Bitcoin, Litecoin, Ethereum, Ripple, and more and wait until their value rise. Once their market prices rise, they sell at a profit. The daily average volume of cryptocurrency trades is 1% of the foreign exchange market. There is the potential to do short-term trades.

• They are susceptible to error and hacking, there is no perfect way to prevent technical glitches, human error or hacking.

• Unexpected changes in market sentiment can lead to sharp and sudden moves in price.

• Cryptocurrency trading carries additional risks such as discontinuation.

• Cryptocurrencies are currently unregulated by both governments and central banks, which may lead to risks.