Identity management in cryptocurrency refers to the processes and technologies used to verify and manage the identities of individuals or entities involved in transactions. It ensures that users can prove their identity while maintaining privacy and security.With the rise of cryptocurrencies, managing identities is crucial to prevent fraud and unauthorized access. Users typically interact using public keys and digital signatures, which serve as their identity in transactions. However, this anonymity can also attract malicious activities.To enhance safety, various solutions have been developed, including decentralized identifiers (DIDs) and self-sovereign identity systems. These approaches empower users to control their information and share only what is necessary for transactions. Implementing effective identity management can help build trust within the ecosystem, ensuring that only legitimate participants are engaged while safeguarding user data. This balance between privacy and verification is essential for fostering a secure and functional environment for cryptocurrency users.