Cryptocurrency, in essence, refers to decentralized digital currencies specifically designed for internet use. Bitcoin, launched in 2008, was the first cryptocurrency and remains the largest, most influential, and most renowned to this day. Over the following decade, Bitcoin and other cryptocurrencies like Ethereum have evolved into digital alternatives to government-issued currencies.

By market capitalization, the most popular cryptocurrencies are Bitcoin, Ethereum, Tether, and Solana. Other well-known cryptocurrencies include Tezos, EOS, and ZCash. Some resemble Bitcoin, while others are based on different technologies or offer new functionalities beyond simply transferring value.

Cryptocurrencies enable online value transfers without intermediaries like banks or payment processors, allowing near-instant, low-cost global transactions around the clock.

Typically, cryptocurrencies are not issued or controlled by any government or central authority. Instead, they are managed by peer-to-peer networks running free, open-source software. Generally, anyone can participate.

Without banks or governments involved, how do cryptocurrencies ensure security? They remain secure because all transactions are verified via a technology called blockchain.

A cryptocurrency blockchain is similar to a bank’s balance sheet or ledger. Each currency has its own blockchain—a continuously re-verified record of every transaction conducted with that currency.

Unlike a bank’s ledger, a cryptocurrency blockchain is distributed across all participants in the digital currency’s network. No company, state, or third party controls it; anyone can take part. Blockchain is a groundbreaking technology made possible only recently through decades of innovation in computer science and mathematics.

Above all, cryptocurrencies allow individuals full control over their assets.