Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on technology known as blockchain, which is a decentralized ledger enforced by a distributed network of computers (often referred to as nodes). Unlike traditional currencies issued by governments (also known as fiat currencies), cryptocurrencies are typically decentralized and not regulated by any central authority. This makes them resistant to government interference or manipulation.

Cryptocurrencies allow for peer-to-peer transactions over the internet and can be used for a variety of purposes, including online purchases, investments, and remittances. Key features of cryptocurrencies include their limited supply (often predetermined by algorithms), anonymity or pseudonymity of users, and the ability to transfer value across borders without intermediaries. Some well-known examples of cryptocurrencies include Bitcoin, Ethereum, Ripple, and Litecoin. The innovative use of blockchain technology and the decentralized nature of cryptocurrencies have led to their growing popularity and the development of new financial ecosystems, including decentralized finance (DeFi) and non-fungible tokens (NFTs).