Cryptocurrency
Digital currencies and assets secured by cryptography and operating on decentralized blockchain networks without central authority.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual form of currency that uses cryptography for security and operates on a decentralized ledger (blockchain) to record transactions, without reliance on central banks or intermediaries. It functions as a peer-to-peer electronic cash system, enabling secure, verifiable transfers of value. Bitcoin, launched in 2009, was the first, followed by over 25,000 others, often classified as commodities, securities, or currencies depending on jurisdiction. Cryptocurrencies like ETH, USDT and USDC are used for payments, investments, and powering decentralized applications.
Related Terms
HODL
A term, originating from a misspelling of "hold," encouraging long-term retention of digital assets despite market volatility.
Polygon PoS Chain
Polygon's proof-of-stake sidechain that parallels Ethereum, offering high-throughput transactions secured by its own validators.
Compound
A decentralized finance (DeFi) protocol that enables lending and borrowing of digital assets through algorithmically managed interest rate markets.
Herd Behavior/Bandwagon Effect
The tendency of prediction market participants to follow prominent public signals, potentially distorting prices.
Initial Margin
The upfront collateral required to open a leveraged position.
Jupiter DEX
A liquidity aggregator decentralized exchange on Solana, optimizing token swaps across multiple protocols.