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Cryptocurrency is a general name referring to all encrypted decentralized digital currencies like Bitcoin.

Cryptocurrency uses cryptography to create coins and secure transactions. Typically cryptocurrencies are open source with pubic, but encrypted, ledgers of all transactions based on blockchain technology.

There are a number of cryptocurrencies traded on cryptocurrency exchanges, and the growing popularity of cryptocurrency means that despite volatile prices, market caps and values are growing every year.

Popular cryptocurrencies include the original Bitcoin, Ethereum’s Ether, and Litecoin.

Cryptocurrency is legal and taxable in the US, but it isn’t legal tender (you can’t pay your taxes in Bitcoin, it is considered investment property). With that said, due to its infancy and history so far, cryptocurrencies should be invested in and used with their historical volatility in mind.

Click on any of the pages below to learn more about cryptocurrency.

TIP: If you are new to cryptocurrency, check out our guide to cryptocurrency for beginners.


Bitcoin Address Formats

Currently, there are three different Bitcoin address formats. You can tell the difference between the types of addresses by if the address starts with a 1, 3, or bc1.


How is Cryptocurrency Created?

Cryptocurrency is created by code. In many cases, new coins are created when transactions are confirmed by a process known as mining.






How Do Bitcoin Transaction Fees Work

When a user creates a Bitcoin transaction, they have to include a transaction fee to be paid to miners to incentivize miners to add their transaction to the blockchain.



Crypto Semantics

In cryptocurrency sometimes terms get used loosely or one term gets used in place of another. Let’s discuss some crypto semantics.


Security Tokens in Cryptocurrency Explained

In cryptocurrency, the term Security Token can either be referring to 1. a cryptocurrency token registered as a security, 2. a digital representation of a traditional security like a stock (a tokenized security), or 3. a cryptographic code used in computer security.