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What Is Cryptocurrency?

A brief overview of cryptocurrency

Wondering if it's the right time to break into the cryptocurrency market? Understandable since there never seems to be the perfect moment.

The journey of cryptocurrency owners, especially ones who have been there since the beginning, has been incredibly rocky.

The History of Cryptocurrency

Before Bitcoin, there were a few attempts at digital currencies with similar ambitions, but they were unable to reach the same popularity heights. Both "B-money" and "Bit Gold" were prior cryptocurrency concepts that incorporated the solution of mathematical problems into the hashing of a blockchain. 

The first iteration of Bitcoin began in 2009, with Satoshi Nakamoto, the alias of the man who has been dubbed its creator.

What is a Cryptocurrency Wallet?

Regardless of your method for buying cryptocurrency, you will need a cyber-wallet to buy it.  A cryptocurrency wallet has a public key and a private key. These digital keys confirm that it is you who is purchasing the cryptocurrency and then links you to the blockchain.

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There are several types of cryptocurrency wallets to consider and  whether those wallets support your desired crypto will be a large factor.

Can Cryptocurrency Be Taxed?

Yes, the United States Internal Revenue Service says that virtual currency transactions are taxable.

Watch the video above for a brief timeline of cryptocurrency, methods of storing crypto and what to do come tax season.

And follow TheStreet for more on cryptocurrency. Start with our ultimate guide on cryptocurrency that dives into the history, how to mine crypto and so much more.

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This article was written by a staff member of TheStreet.