What is Cryptocurrency

Cryptocurrency (crypto) is a form of digital or virtual currency that uses cryptography for security. Unlike traditional currencies, which are issued by governments and central banks, cryptocurrencies operate on decentralized systems, typically based on blockchain technology. This decentralization makes them less susceptible to government control and manipulation. Key characteristics of cryptocurrencies: - **Decentralization**: Most cryptocurrencies are built on decentralized networks using blockchain technology, which distributes data across multiple computers or nodes. - **Cryptography**: Encryption techniques are used to secure transactions, control the creation of new units, and verify transfers of assets. - **Anonymity and Privacy**: While transactions are visible on the blockchain, user identities can remain relatively anonymous. - **Blockchain**: A public ledger that records all transactions made with a particular cryptocurrency. Some well-known cryptocurrencies include: - **Bitcoin (BTC)**: The first and most widely recognized cryptocurrency. - **Ethereum (ETH)**: Known for its smart contract functionality. - **Binance Coin (BNB)**: Used on the Binance exchange. - **Ripple (XRP)**: Focused on facilitating cross-border payments. People use cryptocurrencies for various purposes, such as investments, online purchases, or as a medium of exchange in decentralized finance (DeFi).