Finance
What is Cryptocurrency?
Cryptocurrency is digital money secured by cryptography and recorded on a blockchain rather than issued by a government or bank. Bitcoin was the first; thousands now exist, traded and transferred peer-to-peer.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains cryptocurrency.
Key things to understand
- 1Transactions are verified by a decentralized network, not a central bank.
- 2Ownership and transfers are recorded on a public blockchain ledger.
- 3Supply rules are set by code (e.g., Bitcoin is capped at 21 million).
- 4Prices are highly volatile, and it's both used and speculated on.
Frequently asked questions
- How is cryptocurrency different from regular money?
- It's decentralized (no central bank), digital-only, and recorded on a public blockchain rather than in bank ledgers.
- Is cryptocurrency safe?
- The blockchain itself is secure, but prices are volatile and lost keys or scams can mean permanent loss — caution is essential.
- What is Bitcoin?
- The first and best-known cryptocurrency, launched in 2009, with a supply capped at 21 million coins.