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Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies are based on decentralized technology, using blockchain, which is a distributed ledger system that records all transactions and is maintained by a network of computers.
Unlike traditional currencies, which are backed by governments and central authorities, cryptocurrencies are not subject to government or financial institution regulation. Instead, they rely on complex mathematical algorithms and peer-to-peer networks to validate and authenticate transactions, and to create new units of currency through a process called mining.
Cryptocurrencies are typically used as a means of exchange, similar to traditional currencies, but can also be used for investment purposes. Some of the most well-known cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Ripple, among others. Each cryptocurrency has its own unique features, and its value is determined by market demand and supply, as well as by the underlying technology and the overall market sentiment.