Cryptocurrency is a digital currency that secures and verifies transactions uses cryptography. A cryptocurrency is maintained by a decentralized system, independently of central banks or governments.

Cryptocurrencies operate on a distributed ledger, called the blockchain, which records transaction across a network of computers rather than records being held in one place. When a transaction takes place it is verified by the nodes on the network using cryptography and then recorded in such a way that it cannot be altered. The blockchain ledger is transparent so all transactions can be seen.

The first cryptocurrency was Bitcoin, which was created in 2009, and is still the most well-known and successful digital currency. Other cryptocurrencies include Ethereum, Litecoin and Ripple. Some cryptocurrencies which were created as a joke, such as Dogecoin, have also gone on to be successful.

Cryptocurrencies can be used to make purchases of goods and services. They can be transferred between individuals, or bought and sold on cryptocurrency exchanges. Cryptocurrencies can be held in accounts on exchanges, or in digital wallets.

Cryptocurrencies can be extremely volatile and their value can fluctuate up and down.

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