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What is cryptocurrency?

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Quick answer

Cryptocurrency is digital money secured by cryptography and recorded on a blockchain rather than issued by a government or bank. Bitcoin was the first; thousands now exist, traded and transferred peer-to-peer. Transactions are verified by a decentralized network, not a central bank.

Key things to understand

  1. Transactions are verified by a decentralized network, not a central bank.
  2. Ownership and transfers are recorded on a public blockchain ledger.
  3. Supply rules are set by code (e.g., Bitcoin is capped at 21 million).
  4. Prices are highly volatile, and it's both used and speculated on.

People also ask

How is cryptocurrency different from regular money?
It's decentralized (no central bank), digital-only, and recorded on a public blockchain rather than in bank ledgers.
Is cryptocurrency safe?
The blockchain itself is secure, but prices are volatile and lost keys or scams can mean permanent loss — caution is essential.
What is Bitcoin?
The first and best-known cryptocurrency, launched in 2009, with a supply capped at 21 million coins.