#crypto-currency

What is cryptocurrency?

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional money issued by governments (also called fiat currency), cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger enforced by a network of computers (called nodes).

Key Features:

Decentralized: No central authority (like a bank or government) controls it.

Blockchain-based: All transactions are recorded in a public ledger to ensure transparency and prevent fraud.

Encrypted: Uses cryptographic techniques to secure transactions and control the creation of new units.

Limited supply (in many cases): For example, Bitcoin has a maximum supply of 21 million coins.

Examples:

Bitcoin (BTC): The first and most well-known cryptocurrency.

Ethereum (ETH): Known for its smart contract functionality.

Others: Litecoin (LTC), Ripple (XRP), Cardano (ADA), Solana (SOL), etc.

Common Uses:

Investment/speculation

International money transfers

Buying goods and services (where accepted)

Decentralized applications (dApps) and smart contracts

Let me know if you'd like an explanation of how it works, or details on a specific coin or concept like mining or wallets.