Virtual currency, also known as digital currency or cryptocurrency, is a type of decentralized digital asset that can be used as a medium of exchange or store of value. Virtual currencies are based on cryptographic technology and operate independently of central banks or governments. Transactions in virtual currencies are recorded on a distributed ledger called a blockchain, which provides transparency and security. Some popular virtual currencies include Bitcoin, Ethereum, and Litecoin. Virtual currencies have gained popularity as an alternative investment asset class, with traders and investors speculating on price movements and potential future adoption. However, the volatility and regulatory uncertainties of the cryptocurrency market pose significant risks for investors.
