Cryptocurrency — usually shortened to crypto — is a broad name for digital assets that use computer networks and cryptography to record and verify ownership and transactions.
Think of cryptocurrency as the general category and Bitcoin as one particular cryptoasset within it. There are many other cryptoassets, and they can be designed for very different purposes.
Most cryptoassets exist on digital networks rather than as physical notes or coins. Transactions and ownership can be recorded using technology such as a blockchain.
Cryptoassets can have very different designs, purposes and risks. Some are intended primarily as digital money, some provide access to blockchain networks or applications, and others may represent projects, communities or digital assets.
A coin having a low price does not automatically make it cheap or a good opportunity. Supply, market value, demand, usefulness, ownership concentration and many other factors matter.
Each crypto network has software rules governing things such as transactions, ownership and how new records are accepted.
Cryptographic keys can be used to prove that someone has authority to make a transaction involving particular cryptoassets.
Many cryptocurrencies use a blockchain or similar distributed system to maintain a history of transactions.
On markets where a cryptoasset is traded, its price moves according to what buyers will pay and sellers will accept.
Different projects attempt to solve different problems or attract different communities. That has produced thousands of cryptoassets covering areas such as payments, smart-contract platforms, gaming, decentralised finance and other specialist sectors.
Some cryptoassets are designed around transferring or storing value.
Some coins or tokens are used to operate or pay for activity on a blockchain network.
Tokens can be connected to financial applications, games, services or digital communities.
Some cryptoassets attract buyers mainly because people hope their market price will rise. That can carry substantial risk.
Every traded cryptoasset has its own market. Prices can respond to buying and selling, news, regulation, technology changes, speculation, broader financial markets and events affecting an individual project.
Smaller cryptoassets can sometimes move especially sharply because less money may be needed to move their market price.
The fact that a cryptoasset uses blockchain technology does not make it safe or valuable. Prices can collapse, projects can fail and scams exist. You could lose all the money you put into a cryptoasset.
A digital asset using cryptographic and network technology. “Crypto” is commonly used as shorthand.
Usually a cryptoasset native to its own blockchain network, although everyday usage is not always precise.
A cryptoasset commonly created on top of an existing blockchain platform.
A type of shared digital record where transactions can be grouped into linked blocks.
Software or hardware used to manage the cryptographic keys associated with cryptoassets.
A commonly used estimate calculated from the current price multiplied by circulating supply.
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LiveCryptoPrices UK provides market information and educational content. We do not tell you whether to buy, sell or hold any cryptoasset.