What is Cryptocurrency?

Cryptocurrency is a form of digital or virtual money that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies typically operate on decentralized networks called blockchains.

Key Characteristics

• Decentralization: No central authority controls the network. Transactions are validated by many participants.
• Digital: Cryptocurrencies exist only in digital form.
• Transparency: Most blockchains record all transactions publicly.

How It Works

When you send cryptocurrency, the transaction is broadcast to the network. It gets validated by miners or validators and added to a block. Once confirmed, the transfer is final and cannot be reversed.

Examples of Use

• Transfers between users without intermediaries
• Payments for goods and services
• DeFi (Decentralized Finance) applications
• NFTs and digital collectibles