Glossary · Finance & Payments

Cryptocurrency

A cryptocurrency is a digital asset recorded on a distributed ledger, secured with cryptography and typically not issued or controlled by a central bank.

Updated October 6, 2026

A cryptocurrency is a digital unit of value whose ownership and transfers are recorded on a blockchain or similar distributed ledger. Cryptography secures the records, and ownership is proven through a private key that authorises spending.

Why it matters

Cryptocurrencies let people transfer value directly over the internet without a bank as intermediary, and some platforms allow programmable features through smart contracts. They are also volatile and regulated very differently around the world: some countries treat them as property or commodities, some restrict or ban activities, and tax treatment varies. Stablecoins aim to hold a steady value by being tied to another asset such as a currency, and central bank digital currencies are separate, government-issued digital money. Holding keys yourself, versus leaving assets with an exchange, changes who controls them.

Example

Wallet address:  bc1q...  (derived from a public key)
Sends 0.01 coin to another address
Signed with the private key, broadcast to the network
Included in a block after validation

Anyone can read the transaction on the public ledger, but only the key holder could have signed it.

Common mistakes

  • Losing a private key or seed phrase. There is usually no recovery service.
  • Sending to the wrong network or address; transfers are generally irreversible.
  • Trusting unsolicited giveaway or investment offers, which are common scams.

Rules vary by country; this entry is a definition only, not financial or legal advice.

Get notified when this term updates

Plus occasional practical tips on uptime and monitoring, nothing else. Unsubscribe anytime.

Keep reading

Glossary · Finance & Payments3-D Secure (3DS)3-D Secure is an authentication protocol for online card payments that asks the cardholder's bank to verify the payer, often with an OTP or app approval.Glossary · Finance & PaymentsAadhaarAadhaar is a 12-digit identity number issued to residents of India by the UIDAI, linked to demographic and biometric data and used for identity verification.Glossary · Finance & PaymentsACH (Automated Clearing House)ACH is an electronic network in the United States that processes batched bank-to-bank transfers, such as direct deposits, bill payments and direct debits.

This page is general information written by our editorial team and updated when documentation changes. Servers and providers differ, so test changes safely first. See our editorial policy and disclaimer.