What are cryptocurrencies?

First things first, let’s make sure we’re all on the same page with regards to what cryptocurrencies are. Cryptocurrency is a unique, virtual medium for exchanging money. It uses special cryptographical functions and blockchain technology to conduct online transactions.

Cryptocurrencies are totally decentralized. They’re not controlled by any one entity, and—in theory—they’re immune to government control. (However, the government has recently started working to regulate them and interfere.)

Individuals can also exchange cryptocurrencies online with very few (if any) processing fees. This advantage makes them much more appealing than traditional currencies and financial institutions for exchanges.