A cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates on decentralized networks based on blockchain or distributed ledger technology. The most well-known cryptocurrency is Bitcoin, which was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Unlike traditional currencies issued by governments, cryptocurrencies are typically not controlled by any central authority, making them immune to government interference or manipulation.

Cryptocurrencies can be used for various purposes, including online purchases, investment, remittances, and as a means of transferring value across borders quickly and with relatively low fees. Transactions involving cryptocurrencies are recorded on a blockchain, which is a distributed ledger maintained by a network of computers (nodes) participating in the network. However, they also come with risks, including price volatility, regulatory uncertainty, and the potential for misuse in illegal activities.

The Key characteristics of cryptocurrencies includes: Decentralization, Cryptography, Blockchain technology, Limited supply, Peer-toPeer transactions and Pseudodonymity. Blockchain technology ensures the integrity and security of transactions by making them transparent and tamper-proof. Cryptography is used to secure transactions and control the creation of new units of a cryptocurrency. This decentralized nature and cryptographic security make cryptocurrencies attractive to many users, as they offer greater autonomy, privacy, and security compared to traditional financial systems.