The term for a digital currency that uses cryptography for security is cryptocurrency. Cryptocurrencies are decentralized and typically operate on blockchain technology, which ensures transparency and security in transactions. Bitcoin, the first and most well-known cryptocurrency, set the precedent for a vast array of other digital currencies. The rise of cryptocurrencies challenges traditional financial systems and raises questions about regulatory frameworks and their impacts on global economies. Understanding cryptocurrency's mechanics is essential for informed participation in the evolving financial landscape.