Cryptocurrency is basically a virtual exchange medium that uses a cryptography in order to secure its transactions and control the creation of the system units. Meaning, cryptocurrency simply represents money in the digital marketplace nothing else. It is based on an open-source software, cryptography and networking. It lets people or users avoid fees or the lowest fees as compared to what your banks are charging. The system takes part in the non-cash transactions that is anonymous while guaranteeing a secure transactions.

Basically, cryptocurrencies are known for its extreme security and anonymity to the highest level. Transactions made by this system cannot be reversed nor faked and compared to what your local bank are doing in its client charging high transaction fees. In cryptocurrency the fees are to the lowest level, making it reliable than the conventional currency in the marketplace. Its decentralized nature means they can be available to everyone, in which banks can only be available to those they permitted to open accounts.

This is all about storing a cryptocurrency, wallet concept can be daunting a bit for the uninitiated. Basically, there are wallet software (this can be desktop, online or mobile), hardware based wallets, and of course the paper wallets. Talking about the “best” wallet in the ecosystem will be different for each one of us, it depends on a particular needs.

Wallets don’t just store cryptocurrency directly. It is accurate to think wallet as storing private keys. The Public key cryptography allows cryptocurrency to function, and uses a specific algorithms in order to generate pairs of keys. Public key is the address to which anyone can send its cryptocurrency balance. The private key allows owners spend funds from the specified address. Without the private key, public address becomes bottomless pit that you can only see; money still be sent there, but lost without a private key.

The type of wallets simply represents various ways a certain can secure their secret private key. There are two main types of cryptocurrency wallet, the hot and cold, these refers to the level or internet connectivity of the wallet. Paper wallet and hardware wallets are not actively connected to internet and considered as cold storage. Hot wallet is internet connected wallet, easy to spend, but vulnerable to cyber-attacks. A cold storage protects you from cyber-crime, but still it will be the owner’s responsibility to secure their property.

A cryptocurrency market and exchange are both service in web, allowing cryptoccurrency token holder to trade to other currency or conventional monetary to their system. According to record, there are more than 2000 cryptocurrency exchangers in the ecosystem, among the largest are Bitstamp, Cryptsy, and Coinbase.

The value of cryptocurrencies are ranked in a value or unit times and the cost of exchange to buy equals the capitalization in the market. For instance 1 Steem coin is worth $1.50 on Poloniex this rate was in the previous month. But the price can move at any moment, the market capitalization is only an estimate of the overall value of the digital currency.