#TradingTypes101 Cryptocurrency, commonly known as crypto, is a form of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat money), cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger that records all transactions across a network of computers.

The first and most well-known cryptocurrency is Bitcoin, introduced in 2009 by an anonymous person or group using the name Satoshi Nakamoto. Since then, thousands of cryptocurrencies have emerged, including Ethereum, Binance Coin, Solana, and Cardano, each with its own unique features and use cases.

Cryptocurrencies can be used for various purposes such as online purchases, investment, decentralized finance (DeFi), and smart contracts. Many people invest in crypto with hopes of high returns due to its volatility, while others value it for its potential to offer financial freedom and privacy.

However, crypto also comes with risks including market fluctuations, regulatory uncertainty, and cybersecurity threats. Despite these challenges, the crypto market continues to grow, with more businesses and financial institutions adopting blockchain technology.