Cryptocurrency is a form of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat money), cryptocurrencies operate on technology called blockchain, which is a decentralized ledger maintained by a network of computers (nodes).

Key Features of Cryptocurrency:

Decentralization: Most cryptocurrencies are decentralized and operate on a peer-to-peer network, reducing the need for intermediaries like banks.

Security: Cryptocurrencies use cryptographic techniques to secure transactions and control the creation of new units.

Anonymity and Transparency: Transactions are usually pseudonymous, meaning users' identities are not directly tied to transaction details, although all transactions are publicly recorded on the blockchain.