What is Cryptocurrency

 Cryptocurrency (or crypto) is a digital form of money that uses special computer technology called blockchain to keep transactions secure and transparent.

Here’s a simple breakdown 

💡 What It Is:

• Cryptocurrency is not physical money — it exists only online.

• It is decentralized, meaning no single government or bank controls it.

• Transactions are recorded on a blockchain, which is like a public digital ledger

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 main types of crypto:

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1. Coins

• Definition: Native digital currencies that operate on their own blockchain.

• Examples:

  • Bitcoin (BTC): The first and most famous cryptocurrency, used as a store of value.

  • Ethereum (ETH): Powers the Ethereum blockchain, used for smart contracts.

  • Solana (SOL), Cardano (ADA), Avalanche (AVAX) — other blockchain-native coins.

• Use: Payments, transaction fees, and network security.

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2. Tokens

• Definition: Digital assets built on top of existing blockchains (like Ethereum or Solana).

• Subtypes:

  • Utility Tokens: Used for access to a service or product (e.g., Chainlink (LINK), Filecoin (FIL)).

  • Security Tokens: Represent ownership in real-world assets (like stocks, real estate).

  • Governance Tokens: Give holders voting power in decentralized organizations (UNI, AAVE).

  • Payment Tokens: Used mainly as a medium of exchange (USDT, USDC, DAI).

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 3. Stablecoins

• Definition: Cryptocurrencies pegged to a stable asset (like the US dollar) to reduce volatility.

• Examples:

  • USDT (Tether)

  • USDC (USD Coin)

  • DAI (MakerDAO)

• Use: Trading, payments, and remittances with less price fluctuation.

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4. DeFi Tokens (Decentralized Finance)

• Definition: Tokens powering decentralized financial applications (no banks or intermediaries).

• Examples: UNI (Uniswap), AAVE, COMP (Compound), CRV (Curve)

• Use: Lending, borrowing, staking, and yield farming.

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 5. NFTs (Non-Fungible Tokens)

• Definition: Unique digital assets representing ownership of items like art, music, or in-game items.

• Examples: Bored Ape Yacht Club, CryptoPunks, NBA Top Shot

• Use: Art, collectibles, gaming, identity, and metaverse assets.

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 6. Privacy Coins

• Definition: Focus on user anonymity and transaction privacy.

• Examples: Monero (XMR), Zcash (ZEC), Dash (DASH)

• Use: Private transactions and financial confidentiality.

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7. Meme Coins

• Definition: Cryptocurrencies inspired by internet memes or social trends.

• Examples: Dogecoin (DOGE), Shiba Inu (SHIB), PEPE

• Use: Community-driven; often speculative or entertainment-based.

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 8. CBDCs (Central Bank Digital Currencies)

• Definition: Government-issued digital currencies, regulated and backed by central banks.

• Examples: Digital Yuan (China), Digital Euro (in development)

• Use: