# What Are Cryptocurrencies and How Do They Work?

By [Gronse](https://paragraph.com/@gronse) · 2023-07-24

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Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized networks based on blockchain technology. Transactions are recorded on a public ledger and verified by a network of computers. This allows for secure, transparent, and immutable transactions, making cryptocurrencies an attractive alternative to traditional fiat currencies.

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*Originally published on [Gronse](https://paragraph.com/@gronse/what-are-cryptocurrencies-and-how-do-they-work)*