Cryptocurrency is a type of digital or virtual currency that uses cryptographic technology to secure transactions, control the creation of new units, and verify asset transfers. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
Key Features of Cryptocurrency
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Decentralization – No central authority (like a bank or government) controls cryptocurrencies.
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Blockchain Technology – A distributed ledger records all transactions transparently and securely.
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Anonymity & Security – Transactions are pseudonymous and secured using encryption.
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Limited Supply – Many cryptocurrencies, like Bitcoin, have a fixed supply to prevent inflation.
Popular Cryptocurrencies
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Bitcoin (BTC) – The first and most widely known cryptocurrency.
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Ethereum (ETH) – Known for smart contracts and decentralized applications (DApps).
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Binance Coin (BNB) – Used on the Binance exchange for reduced transaction fees.
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Ripple (XRP) – Focuses on fast and low-cost cross-border payments.
How People Use Cryptocurrency
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Investing & Trading – Many people buy and hold crypto as an asset or trade for profits.
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Payments & Transfers – Some businesses accept crypto for goods and services.
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Decentralized Finance (DeFi) – Enables financial services without traditional banks.
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NFTs & Gaming – Used in digital collectibles, gaming economies, and metaverse projects.
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