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What is cryptocurrency?

Cryptocurrency is a type of digital asset that exists entirely online and is used to store value, transfer money, or interact with digital financial systems. Unlike cash or money held in a traditional bank account, cryptocurrency is not physical and is not issued or controlled by a government or central bank.

Instead, cryptocurrency is created and maintained through software that runs on global computer networks. These networks follow predefined rules that govern how transactions are validated, how new units are created, and how ownership is recorded. Most cryptocurrencies rely on cryptographic technology to secure transactions and prevent unauthorized changes.

One of the core ideas behind cryptocurrency is the ability to transfer value directly between individuals over the internet. This peer-to-peer structure can reduce reliance on intermediaries such as banks or payment processors and enable cross-border transactions with fewer restrictions.