Cryptocurrency
CryptoGlossary term
Definition
A digital or virtual form of currency that uses cryptography for security and operates on decentralized networks, typically based on blockchain technology. Unlike traditional currencies issued by governments, cryptocurrencies are not controlled by any central authority. They can be used for peer-to-peer transactions, investment, and as a medium of exchange on various platforms.
Related terms
- EthereumA decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a digital currency, Ethereum provides a programmable platform powered by its native cryptocurrency, Ether (ETH). It transitioned from Proof of Work to Proof of Stake in 2022 to improve energy efficiency and scalability.
- AltcoinAny cryptocurrency other than Bitcoin, including well-known coins like Ethereum, Solana, and Cardano. Altcoins were created to improve upon Bitcoin's limitations or serve different purposes, such as enabling smart contracts, faster transactions, or enhanced privacy. There are thousands of altcoins available, each with varying levels of utility, risk, and market adoption.
- StablecoinA type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as the US dollar, gold, or another currency. Stablecoins like USDC, USDT, and DAI provide the benefits of cryptocurrency transactions without the extreme price volatility common in the crypto market. They are widely used for trading, lending, and as a safe haven during market downturns.
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