What is cryptocurrency?

 

What is cryptocurrency?

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies (like USD or INR), cryptocurrencies operate on decentralized networks, usually built on blockchain technology.

🔐 Key Features of Cryptocurrency:

Feature	Description
Decentralized	No central authority (like a bank or government) controls it
Blockchain-Based	Transactions are recorded on a public, unchangeable digital ledger
Encrypted	Uses cryptography to secure transactions and control new coin creation
Limited Supply	Most have a fixed supply (e.g., Bitcoin has a cap of 21 million coins)
Peer-to-Peer	Sent directly between users without intermediaries

💱 Examples of Popular Cryptocurrencies:

Name	Symbol	Use Case
Bitcoin	BTC	Digital gold, store of value
Ethereum	ETH	Smart contracts and decentralized apps (dApps)
Ripple	XRP	Cross-border payments
Litecoin	LTC	Faster version of Bitcoin
Solana	SOL	Fast and scalable blockchain platform

🔍 What Can You Do with Crypto?

• Invest or trade it like stocks

• Send money across the world instantly and cheaply

• Use in decentralized finance (DeFi) — borrowing, lending, earning interest

• Buy goods/services (with merchants that accept it)

• Participate in NFTs or DAOs

⚠️ Risks & Considerations

• High price volatility

• Regulatory uncertainty

• Security risks (e.g., hacking if not stored securely)

• Scams and fake coins in the market