What Is Cryptocurrency?

Cryptocurrency is a type of digital money based on cryptography technology. Cryptography is data encryption. It does not have a physical appearance but exists only in digital form. Its main features are anonymity, decentralization, and security.

Cryptocurrencies are circulated within the system directly (P2P/peer-to-peer) – without the participation of a third party. Each of the participants is equal. No one has privileges, regardless of their social or financial status. At the heart of this virtual money is a decentralized open database – called blockchain.

Most cryptocurrencies have an emission limitation (the release of new coins into circulation). In the Bitcoin network, it is 21 million “coins.” And in such cryptocurrency as Ethereum, there is no restriction on emission. Ethereum has a variable rate of emission and no supply cap.