Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on decentralized technology, typically a blockchain. Unlike traditional currencies issued by governments (fiat money), cryptocurrencies are created and managed through complex algorithms and a distributed network of computers. This decentralized nature allows for peer-to-peer transactions without intermediaries, such as banks.
Cryptocurrencies are designed to provide secure, transparent, and efficient methods for conducting financial transactions. Their value can be highly volatile, and they can be used for various purposes, including investment, remittances, and online purchases. Bitcoin, created in 2009, was the first and remains the most well-known cryptocurrency, followed by thousands of others, such as Ethereum, Ripple, and Litecoin. The rise of cryptocurrencies has also led to the development of various applications, including smart contracts and decentralized finance (DeFi).
Overall, cryptocurrencies represent a significant shift in how digital value is perceived, created, and exchanged, offering both opportunities and challenges in the financial landscape.
The cryptocurrency market experienced significant volatility due to increased tariffs, shaking investor confidence. Bitcoin's value plummeted by nearly 10% to $85,321.69, spotlighting the inherent volatility of digital assets. Ether, along…