Cryptocurrency, also known as digital currency or virtual currency, is a form of decentralized currency that uses cryptography to secure and verify transactions and to control the creation of new units. Cryptocurrencies operate independently of central banks and governments and rely on a distributed ledger technology called blockchain to maintain a transparent and secure ledger of transactions.

The most well-known cryptocurrency is Bitcoin, but there are now thousands of different cryptocurrencies in circulation, including Ethereum, Ripple, and Litecoin. Cryptocurrencies are typically bought and sold on online exchanges, where they are traded for fiat currencies or other cryptocurrencies.

Cryptocurrencies have gained popularity due to their potential to provide fast, low-cost transactions, as well as their ability to operate independently of traditional financial institutions. However, they also come with a high degree of volatility and regulatory uncertainty, and are subject to security risks such as hacking and fraud.

As the use of cryptocurrencies continues to evolve, governments and financial institutions are exploring ways to regulate and integrate them into the traditional financial system.