Cryptocurrency is a digital or virtual form of currency that uses cryptography for security, making it challenging to counterfeit. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology. This decentralization means that they operate independently of a central authority, like a central bank or government, which can offer several advantages, including lower transaction fees, faster transaction times, and increased privacy.

The first and most well-known cryptocurrency, Bitcoin, was introduced in 2009 by an individual or group of people using the pseudonym Satoshi Nakamoto. Since then, thousands of alternative cryptocurrencies, often referred to as altcoins (e.g., Ethereum, Ripple, Litecoin), have been developed, each with its unique features and use cases.

Cryptocurrencies can be used for a wide range of purposes, including but not limited to, online purchases, investment, remittances, and as a means to provide financial services in areas without access to traditional banking. They are stored in digital wallets and can be exchanged on various platforms for goods, services, or other currencies, including traditional currencies or other digital currencies.