Cryptocurrency
A decentralized digital currency that uses cryptography and runs on a blockchain, with no central bank. Bitcoin and Ethereum are the best known.
A cryptocurrency is a digital and decentralized currency that uses cryptography to secure transactions and runs on a network called a blockchain. Unlike the dollar or the euro, it does not depend on a central bank or a government to exist — the network is maintained by thousands of computers spread around the world.
The first and best known is Bitcoin, created in 2009. Then came thousands of others, like Ethereum, which beyond being a currency can run smart contracts. Cryptocurrencies that are not Bitcoin are usually called altcoins.
For the trader, the most relevant trait is volatility: crypto prices can swing a lot in a short time. That creates opportunities for fast moves, but also high risk — the same force that produces gains can produce equally fast losses.
Another distinction is that the crypto market runs 24 hours a day, 7 days a week, without the trading hours of traditional exchanges. In practice, pairs like BTC/USD and ETH/USD are among the most traded assets on trading platforms precisely because they combine high liquidity with constant movement.