Cryptocurrency Basics

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.

What is a Cryptocurrency Token?

Researched by Thomas DeMichele Published - January 21, 2018
Last Updated - March 26, 2020

In cryptocurrency, the term “token” describes a digital asset. It refers to the fact that cryptos are both value tokens / currency tokens (they represent value, but aren’t themselves of any inherent value) and they use strings of data called tokens (tokenization is a type of encryption). Meanwhile, sometimes when people say “token” they are referring to digital assets that are built on another cryptocurrency’s platform like Ethereum’s ERC-20 tokens.

What is a Smart Contract? – In Simple Terms

Researched by Thomas DeMichele Published - January 15, 2018
Last Updated - March 26, 2020

A smart contract is self executing contract where the terms and conditions are defined and enforced using software. Smart contracts are generally stored and secured using blockchain technology.

Bitcoin Basics and Beyond

Researched by Thomas DeMichele Published - January 9, 2018
Last Updated - March 26, 2020

Bitcoin (BTC) is a digital asset, specifically a “cryptocurrency.” Bitcoin transactions are recorded on a decentralized and distributed digital public ledger called a blockchain.

What is Stellar?

Researched by Thomas DeMichele Published - January 4, 2018
Last Updated - March 26, 2020

The Stellar network is a distributed blockchain based ledger and database that facilitates cross-asset transfers of value, including payments. The native digital asset of Stellar is called Lumens (XLM).

How to Buy Ripple

Researched by Thomas DeMichele Published - January 2, 2018
Last Updated - March 26, 2020

To buy Ripple you’ll either need to use an exchange that trades Ripple for dollars, or you’ll need to buy Bitcoin or Ethereum first and trade it for Ripple on an exchange that allows that.