Digital Assets: Cryptocurrencies are digital or virtual assets designed to work as a medium of exchange using cryptography for secure transactions.
Decentralization: They operate on decentralized networks using blockchain technology, which is a distributed ledger maintained by a network of computers (nodes) without a central authority.
Security through Cryptography: Transactions are secured through complex mathematical algorithms, making it extremely difficult for unauthorized parties to alter or counterfeit the data.
Blockchain Technology: Each transaction is recorded in a block, and these blocks are linked together in a chronological chain, creating a permanent and tamper-proof record.
Peer-to-Peer Transactions: Cryptocurrencies enable direct transactions between parties without the need for intermediaries like banks, reducing transaction fees and processing times.
Ownership through Private Keys: Users have a pair of cryptographic keys - a public key (like an address) and a private key (like a password) - that allows them to access and control their digital assets.
Limited Supply: Many cryptocurrencies have a predetermined supply limit, which can influence their value over time due to scarcity.
Global Accessibility: They can be used globally, as long as there's internet access, allowing for borderless transactions without the need for currency conversion.
Volatility: Cryptocurrencies are known for their price volatility, which can lead to significant fluctuations in value over short periods.