Cryptocurrency
A cryptocurrency is digital money whose bookkeeping is done by a blockchain instead of a bank.
Explained simply
The name comes from "cryptography", the science of encryption. It ensures that only the owner can spend a balance and that nobody can copy units or spend them twice.
Bitcoin was the first cryptocurrency. Today there are thousands. Most are insignificant, a handful carry real networks with millions of users.
The term is used very broadly in everyday language. It is more precise to distinguish between means of payment (Bitcoin), platform units (Ether) and tokens with special functions.
From the familiar world
Your bank statement shows a number, and the bank guarantees it is correct. With a cryptocurrency the number sits in the blockchain, and thousands of computers jointly guarantee it is correct.
An example
A freelancer in Argentina receives a fee from Germany in a cryptocurrency. The transfer takes minutes instead of days and needs no correspondent bank.
Why it matters
"Crypto" triggers scepticism in many clients. It helps to separate the two: the technology behind it (blockchain) is infrastructure, while an individual cryptocurrency is an asset with high volatility. Both can be assessed separately.
To pass on
„Cryptocurrency simply means the bookkeeping is done by a network of computers rather than a bank.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
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