What is Cryptocurrency?. Cryptocurrency is digital money secured by cryptography and recorded on public networks. Instead of a bank updating balances, a shared ledger tracks ownership and transfers between addresses.
How it works
Transactions are broadcast to the network, verified by nodes, and added to the ledger in an irreversible order. Private keys authorize movement of funds; public keys create addresses for receiving.
Why it matters
It enables border‑agnostic payments, programmable finance, and ownership you control directly. Fees and rules are defined by the network rather than a card processor or bank.
Common pitfalls
- Treating crypto accounts like bank accounts—there is no password reset for lost keys
- Sending to the wrong address or chain without a small test first
- Chasing hype instead of verifying how a network actually works
Quick example
You pay a freelancer overseas in minutes by sending a small test first, then the full amount once confirmed on a block explorer.
See also
- Wallet
- Public/Private Key
- Exchange
- Stablecoin
TL;DR: What is Cryptocurrency? defined in plain English with practical next steps.
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