Cryptocurrency, or crypto, is a *digital currency that uses cryptography technology* for security and runs on a blockchain network.

Here’s the gist:

1. *Digital, not physical*
Crypto has no physical form like paper money. Everything exists on the internet. Examples include Bitcoin, Ethereum, USDT.

2. *Decentralization*
It isn’t controlled by a single party, such as a central bank or government. Transactions are recorded on the blockchain—a kind of digital ledger distributed across thousands of computers worldwide. So the data is transparent and difficult to change.

3. *Security with cryptography*
Each transaction is encrypted and verified by the network. That’s why it’s called “crypto,” from the word cryptography.

4. *Its functions are diverse*
- *Medium of exchange*: Can be used to transfer value between people without an intermediary.
- *Investment asset*: Its value can go up and down like gold or stocks. This is what you experienced earlier, from $0.2 to $25.
- *Platform*: Some cryptocurrencies like Ethereum are used to build decentralized applications or smart contracts.

*Risks*: Its price is highly volatile. It can rise by 12,400% like the example above, but it can also drop drastically in a short time. There is no guarantee of value.