What are cryptocurrencies?
Cryptocurrencies are digital currencies that use cryptography for security. They exist only in digital form and are not issued by a central authority such as central banks. Instead, they use a decentralized system to record transactions and manage the issuance of new units. The first and most well-known cryptocurrency is Bitcoin. Cryptocurrencies can be used to purchase goods and services, and are also traded for profit. They are stored in digital wallets, and transactions are recorded in a public ledger called blockchain, which is a distributed ledger enforced by a disparate network of computers.