Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralized networks based on blockchain technology. The core idea behind cryptocurrencies is to enable secure, transparent, and decentralized financial transactions without the need for intermediaries such as banks or financial institutions. Bitcoin, the most well-known cryptocurrency introduced in 2009, was created by an anonymous individual or group under the pseudonym Satoshi Nakamoto. Bitcoin wallets store private keys that allow access to and management of Bitcoins. If the wallet file is lost or deleted and no backup was made, the Bitcoins become inaccessible. Private keys are crucial for accessing funds, and their disclosure can pose significant risks. Bitcoin mining is the process used to confirm transactions and add new blocks to the blockchain. Every ten minutes, a new block is created, and miners solve complex mathematical problems to validate transactions. This system ensures a chronological order of transactions and protects the network from manipulation. The mining system also functions as a kind of competitive lottery, where no individual can easily manipulate the blockchain or reverse their transactions. The block creation process requires significant computational power and time, ensuring the security and integrity of the network. The subject of this paper is the exploration of cryptocurrencies and the cryptocurrency market, focusing on their technology, volatility, regulation, and application in the global financial system. The goal of the paper is to provide a comprehensive overview of how cryptocurrencies function, analyze the factors affecting their volatility and risk, and examine current regulatory approaches worldwide. Additionally, the paper will explore the potential benefits and challenges of applying blockchain technology in various sectors. The methods used in this research include theoretical analysis and synthesis, descriptive methods, and comparative analysis.