Cryptocurrencies are digitally created virtual assets that are typically processed securely using cryptographic methods. Well-known cryptocurrencies such as Bitcoin, Ethereum, and Ripple are the most common, but there are thousands of different cryptocurrencies and tokens.
Cryptocurrencies have a decentralized structure, unlike traditional financial systems. They are built on blockchain technology. Blockchain is a digital ledger consisting of interconnected blocks, and each transaction is added to the block chain. This ensures that transactions are recorded openly and transparently and cannot be altered.
Cryptocurrencies have many use cases, including digital payments, smart contracts, financial instruments, decentralized finance (DeFi) applications, and tokenization.
However, cryptocurrencies come with certain risks such as volatility, regulatory uncertainties, and security concerns. Therefore, it is recommended to conduct thorough research before investing.