Virtual currency, also known as cryptocurrency, is a form of digital or virtual currency that operates independently of a central bank.
It uses cryptography to secure transactions and control the creation of new units. Some well-known examples of virtual currency include Bitcoin, Ethereum, and Litecoin.
Virtual currency operates on a decentralized system, meaning any government or financial institution does not regulate it. Instead, it relies on a network of users to validate transactions and maintain the security of the currency.
Virtual currency has recently gained popularity due to its potential for lower transaction fees, faster processing times, and increased privacy. However, it also faces challenges, including lack of regulation, high volatility, and potential for illegal activities.