How does cryptocurrency work?

aoluain

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Primarily and simply with computers!

Computers are used to solve complex mathematical computations within a determined time frame, in the case of Bitcoin, 10 minutes. the computer which works out the math quickest gets a reward, coins.

This action of computing that complicated math is called "mining"

This reward is built automatically into the software of the computer network which all the computers compete in the mining process.

The people who run the Mining computers are called Miners, obviously! and they sell their reward (coins) on exchanges to pay for their costs, thats how anybody can get hold of coins! If all the miners never sold their reward there would be no coins in circulation.
 
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Mina Myoui

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Crypto currency is a type of digital assets that can be used as an alternative payment system. From the word itself "crypto" they used some cryptography codes to enhance its security. This stuffs work inside the public database called Blockchain and I think miners are the ones who make the coins move in different locations.
 
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Baby Lion

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Cryptocurrency is work as a medium of exchange that all transactions are saved on its database and supported by the blockchain technology. Cryptocurrency are using cryptography to secure all the transactions and it is a decentralize means there's no third party involve.
 

plvbob0070

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It is a medium of exchange where transactions are sent peer to peer without third party or a middleman like banks. Transactions are mostly about buying, selling, or trading cryptocurrencies. Cryptocurrency wallets are used to transfer balances. It stores public and private keys that let users to send, receive, and monitor their digital currency balance.
 

Numbaone09

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Basically it is a digital asset or digital money that you could use as a currency in many different platforms. To make it short just think about it as digital money or a token that you could use for a specific thing. But in bitcoin we it is digital money where we could use it in buying things.
if you want deep understanding about cryptocurrency read think link: https://blockgeeks.com/guides/what-is-cryptocurrency/
 

spodermen

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First thing first, cryptocurrency is an online or an internet-based medium of exchange. Cryptocurrencies run on a new monetary system that is out of hand of any centralized authority meaning it is decentralized. Cryptocurrency is supported by a decentralized P2P network which we call blockchain. Bitcoin was the very first cryptocurrency to be created, it was popularized by Satoshi Nakamoto using blockchain technology. There are more to know how it works, pal. You'll see it in the hyperlink I provided.
 
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Cryptocurrency serves now as a digital asset. It has value once it has been listed in an exchange. It works in blockchain technology and smart contracts. It is so beneficial because it speeds up the online payment transactions and with fewer fees.
 

Simeon4real

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Cryptocurrencies are powered by blockchain technology which an innovative way to send peer to peer payments. It cuts out the dependence on middle men/intermediaries. The main aim of cryptocurrencies are to become mediums for decentralized payments.

It's important to know that different cryptocurrencies solve different problems. Bitcoin is used as a universal store of value, ETH enabled the usage of smart contacts etc.