Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat), cryptocurrencies operate on decentralized networks based on blockchain technology, which is a distributed ledger that records all transactions across a network of computers. This decentralization makes cryptocurrencies typically immune to government manipulation or interference.

The most well-known cryptocurrency is Bitcoin, which was created in 2009. Cryptocurrencies allow for peer-to-peer transactions, meaning that users can send and receive money without the need for intermediaries like banks. Transactions are verified by network nodes through cryptography, and recorded on the blockchain.

Cryptocurrencies can serve various purposes, including acting as a medium of exchange, a store of value, or as utility tokens that provide access to specific features or services within a platform. They come with various levels of anonymity, security, and volatility, and can be traded on various exchanges. Cryptocurrencies have gained popularity for their potential for high returns on investment and their capacity to facilitate innovative financial technologies but also come with risks such as market volatility, regulatory uncertainty, and security vulnerabilities.