Cryptocurrency, or crypto for short, is a digital currency stored in the blockchain. Okay, you must be thinking — what exactly is blockchain, and what does it have to do with cryptocurrency? Think of it as a decentralized public ledger that tracks all types of transactions across multiple computers. Blockchains make use of cryptography, which encrypts all transactions — preventing sensitive information from getting into the wrong hands.

Cryptocurrencies are digital assets that serve as a medium of digital exchange. At the same time, it uses cryptography to create new units and secure transactions. Naturally, the combination of these technologies results in the birth of something special — hence, the term cryptocurrency.

The market has been battered due to uncertainties — wars, changes in government policies, inflation, and the like. Considering these, it’s worth noting that not all cryptocurrencies will yield expected returns. Hence, investing in something as volatile as cryptocurrency isn’t for everyone. That’s why others challenge the notion that cryptocurrency is a hedge against inflation. While we can never be fully certain of what the future holds, cryptocurrency still has other advantages that can be beneficial in the long run. As they say in the crypto world, DYOR (do your own research).