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What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍 Virtual Currency

 What is Virtual Currency?

Virtual currency is a unit of value used as an alternative to real money. Virtual money can be used to shop, play games, place bets or purchase other services online. Virtual currencies are not controlled or regulated by a central authority. Instead, virtual currencies are traded with cryptographic protocols that can be directly transferred between users.

Virtual currencies have advantages and disadvantages. Its advantages include low transaction costs, providing anonymity, being globally accessible, and not dependent on financial institutions. Disadvantages include security risks, price fluctuations, legal uncertainties and low acceptability.

The most popular among virtual currencies is Bitcoin. Bitcoin was created in 2009 by a person or group named Satoshi Nakamoto. Bitcoin runs on the blockchain, which is a decentralized network. Blockchain is a distributed ledger where transactions are recorded and verified. Bitcoin users store and transfer Bitcoin in digital wallets protected by private keys. Bitcoin's market value is around $1 trillion as of 2023.


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