Cryptocurrency

Definition

One Cryptocurrency is a digital currency that operates on a Blockchain, used as a means of exchange, payment or store of value. Unlike traditional currencies, it is not issued by a central bank, but is based on blockchains that record and validate transactions securely and transparently. The most well-known cryptocurrencies, such as Bitcoin and Ether, allow payments to be made without intermediaries and are often used as investment assets.

It is important not to confuse a cryptocurrency with a token. A cryptocurrency generally has its own Blockchain, like Bitcoin or Ether on Ethereum. A token, on the other hand, is a cryptoasset issued on an existing blockchain and can represent much more than just a currency. Les Utility Tokens offer access to specific services, while the Security Tokens are digital financial assets that can represent digital titles or shares offractional assets.

Cryptocurrencies play a central role in DeFi, facilitating exchanges on DEX secondary markets, collateralization and automatic execution of transactions via smart contracts.

Their value fluctuates according to supply, demand, and regulatory frameworks, influencing their adoption and use globally.

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