What is Bitcoin?

Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

What is Ethereum?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. Ethereum is powered by the Ether token.

In Ethereum, you can create a new account with ether, or held currency, by sending a message to the network. You can also use ether to pay for goods and services.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.

Bitcoin, Ethereum, and cryptocurrencies as a whole are still in their early developmental stages. As such, there is no guarantee that they will be successful, or that they will continue to exist. It is important to do your own research before investing in any cryptocurrency.