What is cryptocurrency in simple words?
Cryptocurrency is digital money that exists only on the internet. It has no paper version, and it is not issued by banks.
Instead of a bank, all transactions are recorded on the blockchain – it's like a huge online ledger that shows who sent money to whom and how much. And the main thing is – this ledger cannot be forged.
For example, $BTC
— the first and most well-known cryptocurrency is Bitcoin. It operates without a government, intermediaries, or banks. Only you and the person you are sending money to.
What’s the catch with cryptocurrencies:
Decentralization – there is no single center (like the Central Bank), everything operates on thousands of computers around the world.
Transparency – you can check any transaction.
Freedom – you can send money to any point in the world without intermediaries.
Scarcity – many cryptocurrencies have a release limit, for example, Bitcoin has a maximum of 21 million coins.
Simply put:
Cryptocurrency is internet money that you fully control yourself. Neither a bank nor the government can freeze your wallet or cancel a transaction.