The term “virtual” in cryptocurrency refers to assets that exist only in digital form and do not have a physical counterpart. These assets are created, stored, and exchanged through blockchain technology, which ensures security and transparency.Virtual currencies are decentralized, meaning they operate independently of a central authority like a government or financial institution. They use cryptographic techniques to secure transactions, manage the creation of new units, and verify the transfer of assets.Users interact with virtual currencies through digital wallets, which store their private and public keys. This enables them to send or receive cryptocurrencies like Bitcoin or Ethereum, which are often used for various purposes, such as trading, investing, or making purchases.Additionally, virtual assets can represent more than just currency. They can encompass tokens used in specific applications, such as smart contracts or decentralized finance, expanding their use cases and functionalities beyond mere transactions.