Cryptocurrency is a digital or virtual currency that is secured by cryptography, making it nearly impossible to counterfeit. It operates on a decentralized network using blockchain technology, removing intermediaries like banks. The first cryptocurrency, Bitcoin, was launched in 2009, inspiring thousands of alternatives.

Key advantages include decentralization, enhanced security, lower transaction costs, and faster cross-border payments. However, cryptocurrency is highly volatile and largely unregulated, which poses significant risks of price fluctuations and fraud. Investors should understand the inherent risks before engaging with this rapidly growing financial asset.