Cryptocurrency is a form of digital currency that uses cryptography to secure transactions and control the creation of new units. Unlike traditional currencies, cryptocurrencies are decentralized and operate without a central authority such as a bank or government. Instead, they rely on a peer-to-peer system that allows anyone, anywhere, to send and receive payments directly. Every transaction is recorded in a public ledger known as the blockchain, which is maintained by a distributed network of computers.
When you own cryptocurrency, you don’t possess a physical object; rather, you hold a digital key that enables you to transfer ownership of a record or unit of value to someone else. Transactions are initiated by sending electronic messages to the network, which are then grouped into blocks, validated by miners or validators, and added to the blockchain. This process ensures transparency, security, and immutability of the transaction history. Cryptocurrencies can be used for digital payments, investments, decentralized finance, and cross-border remittances.
