What is cryptocurrency and how does it work?

Cryptocurrency is a digital or virtual form of currency that uses cryptography for secure transactions, making it decentralized and resistant to fraud. Bitcoin, the first and most well-known cryptocurrency, operates on a technology called blockchain, which is a decentralized ledger that records all transactions across a network of computers. Cryptocurrencies are typically not controlled by any central authority, such as a government or financial institution, which makes them attractive to those seeking an alternative to traditional banking systems. However, cryptocurrencies can be volatile and are subject to regulatory challenges.