Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized technology, primarily blockchain, which is a distributed ledger enforced by a network of computers (nodes). Cryptocurrencies are designed to work as a medium of exchange, allowing for peer-to-peer transactions without the need for intermediaries like banks. They can be created through processes like mining or initial coin offerings (ICOs) and are known for their potential for high volatility and investment opportunities. Examples of cryptocurrencies include Bitcoin, Ethereum, and Litecoin. Cryptocurrencies may also serve various functions, such as enabling smart contracts, decentralized finance (DeFi) applications, and non-fungible tokens (NFTs).