Cryptocurrency

Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and usually operates on decentralized networks based on blockchain technology.

Features

Cryptocurrencies are typically not issued by any central authority. Transactions are recorded on a distributed ledger maintained by many computers, making them difficult to alter.

Examples

Bitcoin was the first; thousands of others exist, including Ethereum. They are used for investment, payments and new financial applications.

Risks

Prices are volatile and the sector faces regulatory scrutiny worldwide.

Frequently asked questions

What is cryptocurrency?

Digital currency secured by cryptography, often on a blockchain.

Is cryptocurrency the same as Bitcoin?

Bitcoin is one cryptocurrency; there are many others.