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What is Cryptocurrency? A digital or virtual currency that uses cryptography for security and is decentralized, meaning it's not controlled by any government or institution. *Key Features:* 1. *Decentralized*: Operates independently of central banks and governments. 2. *Digital*: Exists only in electronic form. 3. *Secure*: Uses cryptography to protect transactions. 4. *Limited supply*: Most cryptocurrencies have a limited supply. *Examples:* 1. Bitcoin (BTC) 2. Ethereum (ETH) 3. Litecoin (LTC) *How it works:* 1. Transactions are recorded on a public ledger called a blockchain. 2. Transactions are verified by nodes on the network using complex algorithms. 3. New coins are created through a process called mining. *Benefits:* 1. *Fast and global transactions* 2. *Low transaction fees* 3. *Security and transparency* *Risks:* 1. *Volatility* 2. *Security risks* 3. *Regulatory uncertainty*
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