HOW DOES CRYPTO CURRENCY WORK

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Cryptocurrencies are digital currencies that use encryption techniques to secure transactions and control the creation of new units.

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 They operate on a decentralized system called a blockchain, which is a public ledger that records every transaction and ensures the integrity of the currency.

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Each cryptocurrency has a limited supply, which is typically determined by a set of rules built into its code, preventing inflation or devaluation.

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Transactions are verified and added to the blockchain by a network of users called miners, who are incentivized with newly created units of the currency.

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The blockchain technology also enables users to send and receive funds directly without the need for a third-party intermediary like a bank or financial institution.

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Cryptocurrencies can be stored in digital wallets, which are typically protected by strong encryption and other security measures.

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The value of a cryptocurrency is determined by supply and demand, with factors such as adoption, utility, and market sentiment influencing its price.

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Cryptocurrencies can be bought and sold on various cryptocurrency exchanges or used as a means of payment for goods and services that accept them.

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