Understanding Cryptocurrency Cryptocurrency is a completely decentralized digital currency, allowing transactions from one person to another without intermediaries. It offers low transaction fees and rapid processing. Buying cryptocurrency involves using an exchange platform, such as Kraken or Coinbase, and converting euros into Bitcoin or vice versa. The value of cryptocurrency depends on supply and demand; for example, Bitcoin has a limited quantity of 21 million coins.
Investing in Cryptocurrency Cryptocurrencies are based on the blockchain system for validating transactions by computer systems. There are over 5000 different cryptocurrencies with varying values and levels of recognition; it's important to choose well-established ones like those listed in the top 20 rankings on CoinMarketCap to avoid potential scams. With increasing acceptance, some platforms now offer payment cards linked directly to cryptocurrency accounts.