Digital Coin Price History

A digital currency is a medium of exchange that operates on a computer network. It uses cryptography to verify transactions and create new coins, and it eliminates the need for a central authority. Digital currencies are often speculative investments, and their prices can be highly volatile. Investors should carefully research a digital currency before making a purchase.

Bitcoin is the best-known example of a digital currency, but there are many others. Some are used as a store of value, while others have specific applications, such as in the payments industry. Many digital currencies have a blockchain, an online ledger that records transaction history.

Blockchain technology also makes it possible for cryptocurrencies to have low transaction fees. This can be especially beneficial for international transfers, as the cost of sending traditional money across borders can be prohibitive. Digital currencies can also be stored in hardware wallets that are disconnected from the internet, which can help protect them from cyber attacks.

The popularity of digital currencies has prompted some governments to consider issuing their own versions. One such proposal, called a central bank-issued digital currency (CBDC), would allow citizens to hold accounts directly with their national central banks. This could enable them to receive government benefits and stimulus payments, for instance, without needing a bank or other middleman. It would also give governments powerful new ways to manage their economies.

While there are many advantages to using a digital currency, there are also some drawbacks. For one, it can be difficult to store and secure. Moreover, because transactions on a digital currency network are irrevocable, they can’t be undone if there is a mistake or fraud. Furthermore, the price volatility of digital currencies can make it challenging for people to use them as a daily means of payment.

Despite these drawbacks, the market for digital currencies has continued to grow. As of February 2021, the total value of all publicly traded cryptocurrencies exceeded $217 billion. This figure doesn’t include the market for ICOs, which have raised more than $6 billion since 2016.

Digital Coin Price History

NerdWallet is committed to helping you make smart decisions about your money. Our writers are subject matter experts who use primary, trustworthy sources and data to create accurate, unbiased content. If you find something that’s incorrect, please contact us.

This article was originally published on Feb. 21, 2022 and has been updated.

Investing in cryptocurrency involves risk including the potential loss of principal. Be sure to conduct your own research and consult with a qualified investment professional before making any financial decisions. NerdWallet doesn’t provide tax or legal advice. This information is for educational purposes only and shouldn’t be considered as investment or financial advice. Please review our Terms of Use for more information.