Cryptocurrency - Page 44

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on decentralized networks based on blockchain technology. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are typically not controlled by any central authority, making them resistant to manipulation or interference. Transactions made with cryptocurrencies are recorded on public ledgers, ensuring transparency and security. Bitcoin, created in 2009, was the first cryptocurrency, and since then, thousands of alternatives have emerged, including Ethereum, Ripple, and Litecoin. Cryptocurrencies can be used for a range of applications, including online purchases, investment, and as a means of transferring value across borders with lower fees compared to traditional banking systems. The market for cryptocurrencies is highly volatile, leading to significant investment risks and opportunities.