Cryptocurrency is a form of digital currency that uses cryptographic techniques to secure transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional currencies, it operates on a decentralized system called blockchain, which is a shared public ledger that records all transactions transparently.

The most well-known cryptocurrency is Bitcoin, created as a decentralized alternative to traditional financial systems. It enables secure peer-to-peer transactions without the need for banks or central authorities. Other cryptocurrencies, like Ethereum, extend this concept by enabling decentralized applications and smart contracts, which automate and streamline various processes.

While cryptocurrencies offer innovative ways to manage and exchange value, they come with risks. They are highly volatile, susceptible to hacking, and lack regulatory oversight. Additionally, losing access to your digital wallet—where cryptocurrencies are stored—could mean losing your entire investment.

If you’re considering cryptocurrency, do your research, use a reputable wallet, and have a backup plan to safeguard your assets.