Cryptocurrency is digital money. Its is intangible, based online and can be transferred without an intermediary. It can be bought or obtained by a process called “mining” and is stored in a digital wallet.
Cryptocurrencies are not backed by the government and very volatile with its value changing largely by the hour. There is no guarantee of getting your money back if you’ve been hacked or scammed.
It can be used to buy goods and services online but due to its volatile nature, it is used to trade for profit. They work under a technology called blockchain which is decentralised and spread across many computers to manage and record transactions.
Popular cryptocurrencies are Bitcoin and Ether but new ones continue to be created.
One of the benefits of this currency is that transfer of funds can be done with minimal fees and allows users to have cheaper transactions but at the same time, its semi-autonomous nature make them prone to illegal activities like money laundering and tax evasion.
Cryptocurrencies are popular right now as people expect them to become more valuable in the future and have no interest so find it a way to move money.