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Finance Dictionary

Cryptocurrency

Definition

A digital or virtual currency that uses cryptography for security.

Deep Dive

Cryptocurrency is a digital or virtual currency that uses cryptography for security, making it extremely difficult to counterfeit or double-spend. Operating on a decentralized public ledger known as a blockchain, cryptocurrencies are not issued by a central authority, making them immune to government interference or manipulation. This decentralization and peer-to-peer nature are core tenets that distinguish them from traditional fiat currencies.

Examples & Use Cases

  • 1Bitcoin (BTC)
  • 2Ethereum (ETH)
  • 3Litecoin (LTC)

Related Terms

BlockchainDecentralizationDigital Asset

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