Cryptocurrency meaning and definition, What is cryptocurrency?

Cryptocurrency (sometimes referred to as crypto) is any form of money that exists digitally or virtually and uses encryption to secure transactions. Cryptocurrencies have no central issuer or regulator, but rather use a decentralized system to record transactions and issue new units.

Cryptocurrency is a digital payment system that does not rely on banks to verify transactions. It is a peer-to-peer system that enables anyone, anywhere to send and receive payments. Rather than physical currency that is carried and exchanged in the real world, cryptocurrency payments exist purely as digital entries in an online database that describes a specific transaction. When you transfer cryptocurrency funds, the transaction is recorded on a public ledger. Cryptocurrency is stored in a digital wallet.

Cryptocurrency gets its name from the use of encryption to verify transactions. This means that the process of storing and transmitting cryptocurrency data between wallets and to a public ledger involves advanced coding. The purpose of encryption is to provide security.

The first cryptocurrency was Bitcoin, which was founded in 2009 and remains the most famous. Much of the interest in cryptocurrencies is trading for profit, with speculators driving price spikes from time to time.