Cryptocurrency is a form of digital cash that can be exchanged for goods and services. It’s not backed or regulated by governments like traditional “fiat” currency. Instead, cryptocurrency operates with a “blockchain,” also known as a public ledger. Users around the world verify transactions by using their computers to solve complex algorithms.
Cryptocurrency, often referred to as “coins,” can be transferred directly from person to person without involving a third party, like a bank. These transactions happen much faster than traditional money transfers and can be done in a matter of seconds.
Unlike traditional currency, cryptocurrencies don’t have a physical object that represents value. There aren’t actual coins or bills. These currencies exist entirely within the digital realm.