Digital currency is in the media and scammers have already figured out a way to steal something that many of us don’t even understand yet. Here are some simple terms and explanations to add to our growing digital dictionaries.

Bitcoin (capital B) is the practice of using bitcoins, (the actual units of currency) as a way to transact business within an anonymous community of bitcoin users. After downloading and installing specialized software, members are assigned public  and private encryption keys which are  stored in a digital “wallet” and  used for buying and selling many things.

Digital wallets need to be protected and backed up in a reliable way.  The value of bitcoins fluctuate on a regular basis and hackers can steal  wallets and/or infect  computers with  viruses once they gain access to accounts. There is no recourse once your “savings” have been stolen and virus removal is a chore.

Bitcoin transactions are becoming more popular in many venues and some businesses are encouraging their use. Like any  product or service, consumers need to understand the pros and cons (pardon the pun) of using a new system for business dealings. Do some homework and research Bitcoin carefully. Use reputable sites and ask other users about their experiences. A bit of time is worth banking on when it comes to saving your accounts, whether you can touch them or not.