What is cryptocurrency?

05.02.2025

Cryptocurrency is a form of digital money that uses cryptography to secure transactions and control the creation of new units. Unlike traditional currencies, cryptocurrency has no physical form and is not controlled by centralized institutions such as banks or governments. Most cryptocurrencies are based on blockchain technology — a decentralized digital ledger that records all transactions. This makes the system transparent, resistant to forgery, and protected from external interference. The first and most well-known cryptocurrency is Bitcoin, created in 2009. Since then, many other digital currencies have emerged, including Ethereum, Binance Coin, Solana, Ripple (XRP), and Tether. Each has its own features and areas of application. Cryptocurrencies can be used: for purchases and online payments; as an investment tool; in decentralized finance (DeFi); for transferring funds globally without intermediaries. However, the cryptocurrency market remains highly volatile, requiring careful research and a thoughtful approach to investing. It’s also important to consider risks related to regulation, storage security, and price fluctuations.