Cryptocurrency is a type of alternative digital currency that uses cryptography to secure financial transactions. Cryptocurrencies are characterized by decentralized control without the participation of third parties - unlike central banking systems. It has been designed to enable transactions to be carried out in a secure, transparent, and unchanging manner.
Currently, over 4000 cryptocurrencies are listed on over 7500 crypto exchanges. Most cryptocurrencies are based on different types of blockchain technology. The code is usually based on open-source software.
On the financial side, the distribution of cryptocurrencies can be associated with the Initial Coin Offer (ICO) procedure, aimed at raising the initial capital necessary for further development. Another goal of creating cryptocurrencies and tokens is marketing based on their use in promotional and motivational activities (e.g. prizes in contests and loyalty programs). Tokenization takes place mainly in the Ethereum environment.
Bitcoin is the first and best known decentralized cryptocurrency.