Cryptocurrency

Cryptocurrency is a digital or virtual form of money that uses cryptography (advanced coding techniques) for security. Unlike traditional currencies (like dollars or euros), cryptocurrencies are usually decentralized, meaning they aren’t controlled by any government or central bank.

Key Features of Cryptocurrency:

  1. Digital Only – No physical coins or bills. It exists purely online.

  2. Decentralized – Most cryptocurrencies run on blockchain technology, a public ledger distributed across many computers (nodes), making it hard to alter or hack.

  3. Secure & Private – Transactions are encrypted and can offer privacy or even anonymity.

  4. Peer-to-Peer Transactions – People can send money directly to each other without needing a bank or payment service.

  5. Limited Supply – Many cryptocurrencies (like Bitcoin) have a fixed supply, which can influence their value over time.

Examples of Popular Cryptocurrencies:

  • Bitcoin (BTC) – The first and most well-known.

  • Ethereum (ETH) – Known for smart contracts and decentralized applications.

  • Ripple (XRP), Litecoin (LTC), Solana (SOL), Dogecoin (DOGE) – Other popular ones with different use cases.

What’s It Used For?

  • Buying goods and services (though still limited in many places)

  • Investing and trading

  • Sending money across borders quickly and cheaply

  • Participating in decentralized finance (DeFi), NFTs, and Web3 apps