What is cryptocurrency?

Basics for beginners

Cryptocurrency is a form of digital money. It has value because its supply is controlled by powerful decentralized cryptographic algorithms. You can store it in a digital wallet, which works like a bank account for regular currency.

There is no coin or note proving you are the owner of a certain amount of cryptocurrency. Confirmation of your ownership exists on all computers of other users of the same cryptocurrency. If you e.g. buy Bitcoin, the proof of this will be transaction confirmations spread out in the whole network of Bitcoin users. The scientific term for this is cryptocurrency is based on distributed ledger technology, also called blockchain. This makes cryptocurrency safe from influence of central banks or other central money-printing units.