What is Cryptocurrency?

Cryptocurrency is a digital or virtual form of money that uses cryptography for security, making it highly secure and difficult to counterfeit. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger that records all transactions across a network of computers.

This decentralization means that no single authority, such as a government or bank, controls the currency, allowing for greater financial autonomy and freedom. The primary purpose of cryptocurrency is to enable secure, fast, and cost-effective online transactions without relying on traditional banking systems.

Cryptocurrencies also offer new opportunities for innovation in the financial sector, including smart contracts and decentralized financial applications, which could transform how we interact with money and digital assets.