Cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike traditional money, it operates on decentralized networks called blockchains, which ensure transparency and security.
A. Key Features of Cryptocurrency
- Decentralization: No central authority like banks or governments controls it.
- Blockchain Technology: A public ledger records all transactions.
- Security & Privacy: Encrypted transactions provide anonymity.
- Limited Supply: Many cryptocurrencies have a fixed supply, like Bitcoin’s 21 million cap.
B. Popular Cryptocurrencies
- Bitcoin (BTC): The first and most valuable cryptocurrency.
- Ethereum (ETH): Known for smart contracts and decentralized applications (dApps).
- Binance Coin (BNB): Used on the Binance exchange for lower transaction fees.
- Solana (SOL): A high-speed blockchain with low fees.
- Ripple (XRP): Designed for fast cross-border transactions.