Cryptocurrency is a digital form of currency that uses encryption techniques to secure and verify transactions and to control the creation of new units.

Instead of being issued by a government or financial institution, cryptocurrencies are created through a process called "mining" which involves solving complex mathematical problems using powerful computers.

Once created, cryptocurrencies are stored in digital wallets and can be used to buy goods and services or traded on cryptocurrency exchanges. Transactions are recorded on a public ledger called a "blockchain" which is maintained by a decentralized network of computers rather than a central authority.

The decentralized nature of cryptocurrencies makes them resistant to censorship and fraud, but their value can be volatile due to market demand and speculative trading.