Cryptocurrency is formed from two words - "crypto" (encryption of data) and "currency" (means of exchange). Thus, cryptocurrency is a medium of exchange (like regular money) that exists in the digital world and uses encryption to ensure transaction security. Cryptocurrency is an alternative form of payment to cash and credit cards.
In simple terms, cryptocurrency is a type of digital or virtual money. It serves ordinary money, such as hryvnias, dollars, pounds, euros, yen, etc. But it has no physical counterparts - banknotes or coins that can be carried with you, that is, cryptocurrency exists only in electronic form.
