Cryptocurrencies are a type of **digital currency** or **digital asset** that uses **cryptography** to secure transactions, control the creation of new units, and verify the transfer of assets. Unlike traditional currencies, cryptocurrencies operate on a decentralized network of computers and are not controlled by any central institution such as a bank or government.
**Bitcoin**, created in 2009 by a person or group of people under the pseudonym **Satoshi Nakamoto**, was the first cryptocurrency and is the best known. Since then, many other cryptocurrencies have emerged, known as **altcoins**
Some key features of cryptocurrencies include:
- **Decentralization**: They do not require a central authority or intermediaries to function.
- **Security**: They use advanced cryptographic methods to protect transactions and prevent falsification or duplication.
- **Transparency**: Although transactions are anonymous, they are publicly recorded on the **blockchain**, which is a distributed ledger.
- **Irreversibility**: Once confirmed, a transaction cannot be reversed.
Cryptocurrencies can be used for a variety of purposes, including investments, money transfers, and as a means of payment for goods and services. However, they also carry risks, such as price volatility and the possibility of being used in illicit activities due to their anonymous nature.
