“Never invest in a business you don't understand.” – Warren Buffet

Cryptocurrency, one of the most enigmatic yet intriguing commodities for many adventurous investors, remains as volatile yet potentially lucrative as ever. Unlike mature assets such as gold, oil or fiat currencies, cryptocurrency is purely a product of the digital age, something that could only exist in the here and now.

Many know that fortunes can be made — and have been made — with currencies like Bitcoin and Ethereum, but they don’t yet understand how the currency works. How can you trust your money with something so intangible? If cryptocurrency is really just a series of ones and zeros, what makes it any different from a YouTube video or Photoshop or Minesweeper? How can it possibly derive value, and more importantly, how can it protect that value if it doesn’t even exist in some sense?

Well, it’s all about blockchain technology. By combining cryptography, peer-to-peer networks, and proof-of-work mechanisms, the blockchain was created, which provides security and accountability to digital transactions.