What Is Cryptocurrency?
Cryptocurrency is a digital asset that uses cryptography to secure transactions and typically runs on a decentralized network called a blockchain, rather than being issued or controlled by a central bank. Bitcoin and Ether are well-known examples. Cryptocurrency prices can be highly volatile.
How It Works
Transactions are recorded on a shared public ledger maintained by a network of computers, and ownership is controlled with private keys.
Risks and Protections
Cryptocurrency held on exchanges is generally not covered by deposit insurance such as FDIC insurance, and lost private keys usually cannot be recovered.
🧮 Calculate It Yourself
Put Cryptocurrency into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Investing Basics Terms
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.