What is Cryptocurrency?

Cryptocurrencies, like any other kind of money, have a monetary value.

The term "crypto" alludes to the software's usage of cryptography. All you need to know is that it's a complicated mathematical calculation that's used to safely transfer the currency from one user to another. Unlike traditional currencies, which rely on a middleman, such as a bank, to credit, debit, and maintain a transaction ledger, cryptocurrencies rely on encryption to establish a virtually unhackable record of transactions. The record is stored on an open blockchain, allowing anybody to verify that the assets are being moved fairly and legally.

Peer-to-peer cryptocurrencies are so-called because they transfer between individual users without requiring faith in a third party to carry out the transaction. In many ways, Bitcoin was a reaction to the lack of trust in banks following the financial crisis of 2009.