What is crypto currency?

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (like the US dollar or the Euro), crypto currencies operate on decentralized networks based on blockchain technology. This technology ensures the integrity and security of transactions by recording them in a distributed ledger that is publicly accessible and maintained by a network of computers (nodes).

Key characteristics of crypto currencies include:

1. **Decentralization**: Crypto currencies are not controlled by any central authority or government. The decentralized nature of blockchain technology allows for peer-to-peer transactions without the need for intermediaries like banks.

2. **Security**: Cryptography ensures the security of transactions and controls the creation of new units. This makes it very difficult for anyone to alter transaction records or create counterfeit coins.

3. **Anonymity**: Transactions can be made with a certain degree of anonymity. While transaction records are public, the identities of the people involved in transactions are often pseudonymous, only linked to a digital address.

4. **Global Accessibility**: Cryptocurrencies can be sent and received anywhere in the world, making them accessible to anyone with an internet connection.

Bitcoin, created in 2009, is the first and most well-known cryptocurrency, but there are thousands of others, such as Ethereum, Ripple (XRP), Litecoin, and many more, each with its own unique features and uses.