What is Cryptocurrency ?

Crypto currencies or virtual currencies are digital means of exchange created and used by private individual or groups. Because most crypto currencies aren’t regulated by national governments, they’re considered alternative currencies – medium of financial exchange that exist outside the bounds of state monetary policy.
                                                     Bit-coin is the preeminent crypto currency and first to be used widely. However, hundreds of crypto currencies exist   and most spring into being every month.
         
Crypto currencies,   supply and value are controlled by the activities of their users and highly complex protocols built into their governing codes, not the conscious decision of central banks or other regulatory authorities. Users who leverage vast amounts of computing power to record transaction   receiving newly created crypto currencies units and transaction fees paid by other user in return are critical to currencies stability and smooth function deal. 
                                                                                                        Importantly, crypto currencies can be exchanged for fait currencies in special online markets meaning each has a variable exchange rate with major currencies e g. U.S Dollar, British pound European euro, and Japanese yen .crypto currencies exchanges are somewhat vulnerable to hacking and represent the most common venue for digital currency.
                             Most but not all, crypto currencies are characterized by finite supply. Their source codes contain instructions outlining the precise number of units that can and will ever exist. Over time, it becomes more difficult for miners to produce crypto currencies units until upper limits is reached and new currency ceases to be mined altogether. Crypto currencies finite supply makes them inherently  deflationary, more akin to gold and other precious metals- of which there are finite supplies – than fiat currencies , which central banks can, in theory, produce unlimited supplies of.
 Due to their political independence and essentially impenetrable data security, crypto currency user enjoy benefits not available to users of traditional flat currencies   such as the U.S Dollar, and the financial systems that those currencies support. For instance, whereas a government can easily freeze or even seize a bank account located in its jurisdiction, it’s very difficult for it to do the same with funds held in crypto currency even if the holder is a citizen or legal resident.