Cryptocurrency, explained
What Bitcoin, blockchains and 'crypto' actually are — in plain English.
A cryptocurrency is digital money that exists only as records on a shared computer network, with no central bank or company in charge. The best known is Bitcoin, launched in 2009. Instead of a bank keeping the ledger of who owns what, thousands of computers around the world keep identical copies and agree on every transaction.
What is a blockchain?
That shared ledger is called a blockchain — a chain of records, or 'blocks', that is very hard to alter once written. The idea has since been used for thousands of other coins and projects, from Ethereum (which can run small programs called smart contracts) to 'stablecoins' designed to hold a fixed value such as one US dollar.
How people use and hold it
People buy and sell crypto on online exchanges and store it in digital 'wallets'. Because there is no central authority, sending it is fast and borderless — but also irreversible, and lost passwords can mean lost funds. Prices are famously volatile, swinging sharply on news and speculation.
A word of caution
Cryptocurrency is a young, lightly regulated and high-risk market. Scams and collapses are common. Nothing on this site is financial advice — always do your own research and never risk money you cannot afford to lose. See our FAQ and glossary for more.