Cryptocurrency

A cryptocurrency is a form of digital money whose balances and transfers are recorded on a blockchain rather than in a bank's database. Ownership is controlled with private keys, and a network of independent computers checks and records transactions under shared rules, so on open networks no single company can freeze funds or create new units at will.

Bitcoin, launched in 2009, was the first. Thousands have followed, including Ethereum, which added smart contracts, and stablecoins pegged to fiat currencies. The word is often used loosely for any crypto asset, but strictly a coin is native to its own blockchain, while tokens are issued on top of an existing one.

Prices are very volatile, and many projects fail or turn out to be scams. Transactions are usually irreversible, so mistakes and theft are hard to undo, and losing a private key means losing access. Regulation and tax treatment vary by country, with frameworks such as MiCA in the EU setting rules for issuers and service providers.