A cryptocurrency is a digital currency that runs on a blockchain. It operates independently of central authorities such as banks or governments and allows fast, direct, and secure payments worldwide.
Unlike traditional currencies like the euro or US dollar, cryptocurrencies are not issued by a central bank but are managed in a decentralized manner across a global computer network. All transactions are recorded on a public blockchain, making them transparent and traceable.
What makes cryptocurrencies unique?
- Decentralized: There is no central authority – users jointly manage the network.
- Tamper-proof: Blockchain technology prevents unauthorized manipulation.
- Borderless: Cryptocurrencies can be transferred worldwide within seconds.
- Digital: There are no physical coins or notes – everything happens online.
Popular examples of cryptocurrencies
- Bitcoin (BTC): The first and most well-known cryptocurrency, developed as a decentralized payment system.
- Ethereum (ETH): Enables not only payments but also smart contracts and decentralized applications.
- Polygon (POL): A scaling solution for Ethereum with its own native token.
- USD Coin (USDC): A stablecoin pegged to the US dollar.
Today, there are over 20,000 cryptocurrencies – many with unique use cases and technologies.
Floin Insight
Floin lets you buy, sell, and securely store a wide range of cryptocurrencies – all in a regulated environment that emphasizes simplicity, transparency, and security.
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