Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on a technology called blockchain, which is a decentralized ledger that records all transactions across a network of computers. Cryptocurrencies are designed to be secure, anonymous, and resistant to counterfeiting, and they typically operate independently of a central authority or government.
The most well-known cryptocurrency is Bitcoin, created in 2009, but there are thousands of other cryptocurrencies, often referred to as altcoins, such as Ethereum, Ripple, and Litecoin. Cryptocurrencies can be used for a variety of purposes, including online purchases, investment, remittances, and as a means of transferring value without the need for intermediaries like banks.
The value of cryptocurrencies can be highly volatile, and they are often subject to market speculation. As digital assets, they can be traded on various exchanges, and users typically store them in digital wallets. Because of their decentralized nature and the use of blockchain technology, cryptocurrencies have sparked discussions about the future of money, financial systems, and government regulation.