What is cryptocurrency and how does it work

Cryptocurrency is a form of money, just like the dollars, euros, or yen you use every day. The key difference lies in how it is created, stored, and transferred.

Instead of being controlled by a central authority, like a government or a bank, cryptocurrencies rely on a technology called blockchain to manage and secure transactions.

Cryptocurrency is a term you might have heard often, but what exactly does it mean? In simple terms, cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments and central banks, cryptocurrencies operate on decentralized networks based on technology called blockchain.

At its core, cryptocurrency is a form of money, just like the dollars, euros, or yen you use every day. The key difference lies in how it is created, stored, and transferred. Instead of being controlled by a central authority, like a government or a bank, cryptocurrencies rely on a technology called blockchain to manage and secure transactions.

Blockchain Technology

A blockchain is a decentralized and distributed ledger that records all transactions across a network of computers. Think of it as a digital, public ledger that keeps a transparent record of every transaction made with a particular cryptocurrency. This technology ensures the security, transparency, and immutability of the transaction history.