Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use a decentralized system, which means that transactions are recorded on a public ledger called a blockchain.
When someone makes a transaction using a cryptocurrency, it is recorded on the blockchain and verified by a network of computers. Each transaction is encrypted and linked to the previous transaction, creating a chain of blocks that cannot be altered or tampered with.
Cryptocurrencies are created through a process called mining, where powerful computers solve complex mathematical equations to validate and verify transactions. Miners are rewarded with new cryptocurrency coins for their efforts.
Crypto Can be used Anywhere?
Cryptocurrencies can be bought and sold on cryptocurrency exchanges, and can also be used to purchase goods and services from merchants who accept them as payment. The value of a cryptocurrency is determined by supply and demand, as well as market speculation and investor sentiment.