GlossaryBeginner
Cryptocurrency
A digital asset that uses cryptography and a blockchain to record ownership and transfers.
A cryptocurrency is a digital asset whose ownership and transaction history are recorded on a blockchain rather than in a bank's private database. Cryptography is used to secure transactions and control the creation of new units.
There are thousands of different cryptocurrencies, each with its own rules, purpose, and underlying blockchain. Some function primarily as digital money, while others serve other purposes such as powering applications or representing other assets.
Examples
- Bitcoin and Ethereum are both examples of cryptocurrencies, each with different designs and goals.
- A cryptocurrency's rules for issuance and transfer are defined in the software of its underlying blockchain.