Cryptocurrency is a digital or virtual currency based on blockchain technology. This currency is secured by cryptography, which ensures its security and transparency of transactions. The main feature of cryptocurrency is that it is not under the control of any central bank or government, meaning it is decentralized.
**Examples**: Bitcoin, Ethereum, Ripple etc.
**Key Features**:
1. **Decentralized**: No central authority (like a bank) controls it.
2. **Blockchain**: All transactions are recorded on a digital ledger (blockchain), which is transparent and secure.
3. **Cryptography**: Cryptography is used to keep transactions secure and to create new units.
4. **International Transactions**: Cryptocurrency is used to send money quickly and at a lower cost worldwide.
**Uses**:
- Online shopping
- Investment
- International payments
- Smart contracts (e.g., Ethereum)
**Risks**:
- High price volatility
- Lack of regulation
- Risk of cyber attacks
In short, cryptocurrency is a digital currency based on modern technology, which has emerged as an alternative to traditional money, but it is important to exercise caution when investing in it.