Cryptocurrency (crypto) is a type of digital or virtual currency that uses cryptography for security, making it difficult to counterfeit. Unlike traditional currencies issued by governments (fiat money), cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger that records all transactions securely and transparently.
Key Features of Cryptocurrency
1. Decentralization – Most cryptocurrencies operate on decentralized networks, eliminating the need for a central authority like banks or governments.
2. Blockchain Technology – Transactions are recorded on a blockchain, ensuring security, transparency, and immutability.
3. Security & Anonymity – Cryptography secures transactions and protects users’ identities, though transaction records are publicly accessible.
4. Limited Supply – Many cryptocurrencies, like Bitcoin, have a fixed supply, preventing inflation.
5. Peer-to-Peer Transactions – Users can transfer funds directly without intermediaries, reducing fees and processing time.
Popular Cryptocurrencies
Bitcoin (BTC) – The first and most well-known cryptocurrency, often referred to as "digital gold."
Ethereum (ETH) – Known for its smart contract functionality, allowing decentralized applications (DApps) to be built on its network.
Binance Coin (BNB) – Used on the Binance exchange for trading fee discounts and transactions.
Cardano (ADA), Solana (SOL), and XRP (XRP) – Other notable cryptocurrencies with unique use cases.
are still developing laws around crypto.
Security Risks – Hacks, scams, and lost private keys can result in losses.$BNB
