What is a cryptocurrency?
A cryptocurrency, also known as crypto, is a type of digital asset with multiple use cases. It's primarily a way to transfer value between people digitally, including monetary value, ownership rights, or even voting privileges. Crypto differs from other digital payment systems because of its roots in blockchain technology. This basis gives cryptocurrencies more freedom from central entities like governments or banks.
Bitcoin is the most famous example of a cryptocurrency. It has a simple use case of transferring monetary value to anyone across the globe without the need for intermediaries. Its blockchain records all transactions and ensures security and network stability.