Cryptocurrencies are usually created using blockchain technology. The blockchain describes the way transactions are recorded in 'chains' and timestamped. It is a somewhat complex technical process, but the result is a digital ledger of cryptocurrency transactions that is difficult for hackers to tamper with.

In addition, transactions require a two-factor authentication process. For example, you may be asked to enter a username and password to initiate a transaction. Then you may need to enter an authentication code that is sent to you via text message on your mobile phone.