2. What are the characteristics of cryptocurrency?

Based on the definition of what cryptocurrency is, we can briefly understand its characteristics. Some characteristics already expressed in the concept, we can analyze further are:

Decentralization: This is the most outstanding feature of cryptocurrency. The use of blockchain technology allows cryptocurrencies to not be influenced by any individual or organization. At the same time, cryptocurrencies can be used in global transactions through a private distribution network, without the need for third parties.

Rules: The mining and use of cryptocurrencies must comply with the rules of blockchain technology. This allows for limited, inflation-free mining.

Non-physicality: Electronic money only exists on the network, users cannot hold, grasp or see it in physical form. As long as there is an internet connection, users can use it anywhere, making the liquidity and convenience of electronic money more appreciated than other types of paper money.