Cryptocurrency is a form of digital or virtual money that uses cryptography for security. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate on decentralized networks based on blockchain technology. This innovation has transformed how people think about money, payments, and financial freedom.A cryptocurrency is a digital asset designed to work as a medium of exchange. Transactions are recorded on a public digital ledger called a blockchain, which is maintained by a network of computers (nodes). Because of this decentralized structure, no single authority controls the currency, making it resistant to censorship and fraud.
Cryptocurrencies rely on blockchain technology to validate and record transactions. When a user sends crypto to another user:
The transaction is broadcast to the network.
Network participants verify it using consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS).
Once verified, the transaction is added to a block and permanently recorded on the blockchain.
Popular Cryptocurrencies
Bitcoin (BTC): The first and most valuable cryptocurrency, often called “digital gold.”
Ethereum (ETH): Known for smart contracts and decentralized applications (dApps).
Binance Coin (BNB): Used within the Binance ecosystem for trading fees and services.
Solana (SOL): Popular for fast and low-cost transactions.
