What Are the Risks of Cryptocurrencies?

Cryptocurrencies are digital or virtual currencies created on something called the blockchain, a public ledger that stores the information about cryptocurrency transactions between users around the world. This digital database, supported by a global network of computers called nodes, is the crucial technology that sets cryptocurrencies apart from traditional forms of money. 

It serves the purpose of keeping ownership records and transactional data. Security on the blockchain is ensured through cryptography. This practice involves the decoding and encrypting of data, and helps to prevent attacks from hackers, and incidences such as double-spending and 51% attacks from occurring. 

Cryptocurrencies do not have a physical form and are mostly decentralized — i.e. they are not issued by any central authorities. While Bitcoin was the first cryptocurrency ever created, some altcoins (cryptocurrencies that aren’t Bitcoin) launched over time include Ethereum’s Ether, Litecoin, Cardano’s ADA, Tether, and many others.