What is a cryptocurrency?

A cryptocurrency is a peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate the transactions and generation of the currency itself. At present, all cryptocurrencies are alternative currencies, as no nation has adopted a cryptocurrency alternative to fiat money.

Cryptocurrency implementations often use a proof-of-work scheme to guard against digital counterfeiting. While over 30 different cryptocurrency specifications and protocols have been defined, most are similar to and derived from the first fully implemented cryptocurrency, Bitcoin.

In English

A cryptocurrency is digital money, designed in such a way that it’s supply is controlled by complex software rather than a central bank. People can get cryptocurrency from an exchange, which works like a forex bureau and provides cryptocurrencies in exchange for fiat money (ordinary money like US dollars or Kenya shillings).