Cryptocurrencies are a digital currency that acts as an alternative to traditional money. This type of currencies exists entirely online. It does not in general have an actual physical form, but exists in a blockchain on a server, which stores data regarding transactions in blocks without personal identifying factors.

They are not regulated and supported directly by a bank or other traditional lending institutions, and transactions are highly encrypted to keep your personal information private, regardless of the number and amounts of the transactions that have been made. They can be traded like any other instrument.