Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies are decentralized, meaning any government or financial institution does not control them.
Instead, they use a distributed ledger technology called blockchain, which records transactions on a public database that cannot be altered or manipulated. The most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, thousands of other cryptocurrencies have been developed, including Ethereum, Ripple, Litecoin, and more.
Cryptocurrencies can be used for online purchases, investment, or as a store of value. They can be bought and sold on cryptocurrency exchanges, where their value is determined by supply and demand. Cryptocurrency transactions can be anonymous, which has led to concerns about their use in illegal activities such as money laundering and terrorism financing.