Cryptocurrencies are decentralized digital currencies that rely on encryption technologies to secure transactions.
They operate over a network known as the blockchain, which is a digital ledger that records all operations transparently.
They are not controlled by any central authority such as governments or banks.
The first cryptocurrency was Bitcoin, which appeared in 2009.
There are thousands of other currencies like Ethereum, Ripple, Litecoin.
They are used in trading, financial transfers, and some decentralized projects.
They are characterized by speed, low costs, and accessibility from anywhere.
However, they are very volatile and carry high risks for investors.
Legal regulation varies from country to country, and some countries prohibit them.
Some currencies rely on mining, which is the process of validating transactions and earning coins.
There are currencies known as stablecoins like USDT, linked to the dollar to reduce volatility.
Some currencies are used in applications like decentralized finance (DeFi) and smart contracts.
Digital wallets are used to securely store and manage currencies.
Cryptocurrencies still face challenges such as regulation, security, and widespread user adoption.