Cryptocurrencies are forms of digital or virtual money that are designed to be secure and, often, anonymous.

A cryptocurrency is a digital or virtual currency that serves as a medium of exchange. Such currencies are strongly associated with the Internet and use cryptography – the process by which legible information is converted into an almost impossible-to-crack code – for the tracking of purchases and transfers.

Where do cryptocurrencies come from?

The first – and still most important – cryptocurrency is Bitcoin, which was introduced in 2009. Many more cryptocurrencies have been created over the last decade, with more than one thousand now available online. Cryptography has a much longer history, having emerged as an essential means of making communication secure during the Second World War.

Practical Application Example

“ Cryptocurrencies are supported and secured by highly complex source codes and technical controls. Examples of popular cryptocurrencies include Bitcoin, Bitcoin Cash, Ethereum, Ripple and Litecoin. While the most popular cryptocurrencies trade on special secondary exchanges similar to Forex exchanges for fiat currencies, the exchange of many lesser-used cryptocurrencies is only possible through private, peer-to-peer transfers. ”