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How Cryptocurrency Works - NYTA cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses cryptographic techniques and it's protocol to verify the transfer of. Cryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
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