Cryptocurrency is a catchall term that refers to digital or virtual means of exchanging or storing money. Cryptocurrency functions under a decentralized model, meaning that it does not require a central bank or government entity to create or regulate it.

Instead, it is self-governing via a system known as the blockchain, which is a public ledger of every transaction ever conducted in chronological order. Every user downloads the ledger, creating full transparency that helps to reduce fraud. Transfers are carried out via private and public keys for security.