Digital currency secured by cryptography and typically decentralized on a blockchain network.
Cryptocurrency is a digital form of money secured by cryptographic techniques, operating on decentralized networks (usually blockchain). Bitcoin, created in 2009, was the first cryptocurrency; today thousands exist including Ethereum, Litecoin, and Ripple. Cryptocurrencies offer benefits like fast international transfers, no central authority control, and pseudonymity, but also present challenges: extreme volatility, regulatory uncertainty, hacking risks, and complexity. Most cryptocurrencies are not backed by governments or physical assets, making their value purely dependent on demand and adoption. Investors view crypto as either a hedge against inflation, a speculative asset, or a technological revolution, depending on their perspective. Tax treatment is complex—cryptocurrencies are typically taxed as capital assets or property, not currency.