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What Is Cryptocurrency?

TL;DR

Cryptocurrency is digitally native value transferred on cryptographic networks without central clearing control.

Clear explanation

Cryptocurrencies are digital assets secured by cryptographic rules and distributed network consensus.

Settlement happens on protocol rails, which changes custody, operational risk, and finality assumptions versus traditional finance.

For serious operators, key topics are consensus security, custody design, and liquidity behavior across venues.

Technical example: wallet transfer flow

An analyst sends stablecoins between self-custody wallets and records confirmation time and fees.

  1. Sign transaction with private key.
  2. Broadcast to network nodes.
  3. Wait for block inclusion and required confirmations.
  4. Archive tx hash, fee, and settlement time.

ASCII model

Private key signs tx -> P2P network -> Block inclusion -> Confirmations -> Final settlement

Asset categories in crypto markets

CategoryPrimary functionCore risk focus
Store-of-value assetsScarcity thesisMacro drawdown risk
Utility tokensProtocol usageAdoption and tokenomics risk
StablecoinsSettlement unitIssuer and depeg risk

Internal links

FAQ

Is cryptocurrency the same as blockchain?

No. Blockchain is one ledger architecture; cryptocurrency is an asset class.

Do all crypto assets carry equal risk?

No. Liquidity, governance, utility, and market depth differ substantially.

Why is custody central in crypto?

Because private key control determines ownership and operational risk.