What is Cryptocurrency?

Cryptocurrency, often called crypto, is a form of digital currency that uses cryptography to secure transactions and control the creation of new units. Unlike traditional money issued by governments and central banks, most cryptocurrencies are decentralized and operate on a technology called blockchain.

A blockchain is a distributed ledger — a kind of database shared across a network of computers. This makes it nearly impossible to alter past records, ensuring transparency and security. Bitcoin, created in 2009, was the first cryptocurrency and remains the most well-known. Since then, thousands of alternatives like Ethereum, Litecoin, and Solana have emerged, each with unique features.

People use crypto for many purposes: online payments, international transfers, investments, and even powering decentralized applications (dApps). Some see it as “digital gold,” while others focus on its role in creating new financial systems outside of traditional banks.

However, cryptocurrencies also carry risks — price volatility, regulatory uncertainty, and potential misuse. As adoption grows, governments and businesses are working on frameworks to balance innovation with security.