Cryptocurrency is a type of money that exists only online. It uses special computer codes to keep it safe and a system called blockchain to track all transactions. This setup makes it very hard for anyone to fake or spend the same cryptocurrency more than once.

Cryptocurrencies, digital currencies, and digital assets are all names for the same kind of thing. Here’s what makes cryptocurrencies special:

• They are designed to work on the internet.
• They can be programmed to do specific things.
• Sending them is quick and cheap.
• They are open for anyone to see how they work.
• They aren’t controlled by countries or banks, so you don’t need special accounts to hold money in different countries.
• It’s nearly impossible to make fake ones.
• You don’t need a bank account to use them.

Cryptocurrencies are like tokens that can be exchanged. Just like you can use different combinations of stamps to mail a letter as long as they add up to the right value, you can exchange one cryptocurrency for another if they have the same value. This is because they are “fungible,” meaning each unit is the same as every other unit.

Another key feature is that they don’t have a central power in charge. Once a transaction is added to the blockchain, it can’t be changed. This makes it hard for anyone to block or reverse transactions, freeze money, or stop someone from using the currency. Changes to the rules require agreement from many users.

Cryptocurrencies are attractive to investors and developers because they operate independently. No single person or organization can shut them down.