What Is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that uses cryptography for security. It is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies are decentralized and typically use a distributed ledger technology, such as blockchain, which serves as a public financial transaction database.

Cryptocurrency transactions are usually anonymous and secure due to the use of advanced encryption techniques. Transactions can be made directly between two parties without the need for an intermediary like a bank or other third party service provider. This makes them attractive to those who want more control over their money than traditional banking systems offer. Additionally, cryptocurrencies often have lower fees associated with them compared to traditional payment methods since there is no middleman involved in processing payments.

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