#TradingTools101
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is designed to work as a decentralized medium of exchange, meaning it is not controlled by any government or central authority like a bank. Instead, it operates on a peer-to-peer network using blockchain technology.
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Key Features:
1. Decentralization:
Cryptocurrencies are not controlled by any central institution. They run on a decentralized network of computers.
2. Blockchain Technology:
All transactions are recorded on a public digital ledger called a blockchain. Once added, data cannot be changed, making it secure and transparent.
3. Cryptography:
Cryptocurrencies use advanced encryption techniques to secure transactions and control the creation of new units.
4. Global and Fast:
Transactions can be made across borders within minutes, without the need for traditional banks or intermediaries.
5. Examples:
Popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Ripple (XRP).