What is cryptocurrency?
- Digital or virtual form of money
- Uses cryptography for security
- Operates independently of a central authority
Types of cryptocurrencies
- Bitcoin is the first and most popular
- Ethereum allows smart contracts
- Litecoin and Ripple are other examples
How cryptocurrency works
- Transactions are recorded on a decentralized ledger called blockchain
- Miners validate transactions and add them to the blockchain
- Encryption ensures security and anonymity
Benefits of cryptocurrency
- Decentralization reduces risk of fraud and manipulation
- Lower transaction fees compared to traditional banking
- Potential for fast and borderless transactions
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