What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology, which is a distributed ledger enforced by a network of computers (nodes). This decentralized nature makes cryptocurrencies resistant to fraud and manipulation. Transactions made with cryptocurrencies are recorded on the blockchain, providing transparency and security. Bitcoin, created in 2009, was the first decentralized cryptocurrency, and since then, thousands of alternatives have emerged, each with unique features and uses. Cryptocurrencies can be used for various purposes, including online purchases, investment, and remittances, and they offer advantages such as lower transaction fees and faster transfers compared to traditional banking systems. However, they also come with risks, including price volatility and regulatory challenges, making it essential for users to conduct thorough research before investing or using cryptocurrencies.