What is Cryptocurrency?
Cryptocurrency is a type of digital money that only exists online. Unlike regular money (like dollars or euros) that governments issue, cryptocurrencies are decentralized and run on a technology called blockchain.
Think of the blockchain as a public, digital database that records every transaction made with a cryptocurrency. This database is shared across many computers worldwide, so no single person or organization controls it. This decentralization makes it secure and nearly impossible to fake or double-spend coins.
The most popular cryptocurrencies are Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) but there are thousands of others, each with its own purpose and community.
Cryptocurrencies can be:
Traded for profit
Used to buy some goods and services
Sent to others as digital payments
Used for specific utilities. Some cryptocurrencies offer perks like revenue-sharing, access to exclusive products or services, or other benefits within a certain ecosystem.
Why are people interested in crypto?
Privacy and Control: With crypto, you control your own funds, without needing a bank.
Investment: People buy crypto as a way to invest, hoping its value will increase over time.
New Technology: Blockchain tech offers new ways to handle money and digital assets, sparking innovation in finance and beyond.
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