Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology, which is a distributed ledger enforced by a network of computers (nodes). Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are typically not controlled by any central authority, making them resistant to manipulation and interference.

Cryptocurrencies enable peer-to-peer transactions over the internet and are often designed to provide a degree of anonymity. The most well-known cryptocurrency is Bitcoin, created in 2009, but thousands of alternatives, known as altcoins, exist, each with distinct features and use cases. Transactions in cryptocurrencies are recorded on the blockchain, which provides transparency and security, as each transaction is verified by network participants before being added to the ledger.

Cryptocurrencies can be used for various purposes, including as a medium of exchange, investment, or to enable smart contracts and decentralized applications. The market for cryptocurrencies is highly volatile, with prices subject to rapid fluctuations influenced by market demand, regulatory news, and technological developments.