What Is Cryptocurrency?

This article is here to help you understand what cryptocurrency is, highlight some of the most popular cryptocurrencies, and provide useful information to get you started.

Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat currency), cryptocurrencies are decentralized and typically built on blockchain technology—a distributed ledger enforced by a network of computers (nodes).

Key characteristics of cryptocurrency:

Decentralized: No central authority or bank controls it.
Secure: Transactions are encrypted and recorded on the blockchain.
Transparent: All transactions are traceable and public.
Global: Can be sent and received anywhere in the world.

Popular Cryptocurrencies

There are thousands of cryptocurrencies, but here are a few of the most widely used and recognized:

1. Bitcoin (BTC)

The first and most well-known cryptocurrency.
Often referred to as "digital gold."
Primarily used as a store of value and medium of exchange.

2. Ethereum (ETH)

Known for its smart contract functionality.
The foundation for many decentralized applications (dApps) and NFTs.
Second-largest by market cap after Bitcoin.

3. Tether (USDT)

A stablecoin pegged to the US dollar.
Used to reduce volatility and facilitate trading between cryptocurrencies.

4. BNB (formerly Binance Coin)

Originally created to power the Binance Exchange.
Used for trading fee discounts and various utilities within the Binance ecosystem.

5. Solana (SOL)

Known for high-speed and low-cost transactions.
Popular among developers building dApps and NFT platforms.

How Are Cryptocurrencies Used?

Investing & Trading: Many people buy cryptocurrencies as an investment.
Payments: Some merchants accept crypto for goods and services.
Remittances: Fast and often cheaper than traditional bank transfers.
DeFi (Decentralized Finance): Lending, borrowing, and earning interest without a bank.
NFTs & Gaming: Used in digital collectibles and blockchain-based games.

Things to Know Before Getting Started

Volatility: Prices can change rapidly. Be prepared for ups and downs.
Security: Always use trusted wallets and exchanges. Beware of scams.
Wallets: You’ll need a digital wallet to store your crypto safely.
Regulation: Crypto laws vary by country. Check your local regulations.

Need More Help?

If you have questions about how to use crypto on our platform, please check our other help articles or contact support directly. We’re here to help!