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Cryptocurrencies are digital assets created using computer networking software that enables secure trading and ownership.

Bitcoin and most other cryptocurrencies are supported by a technology known as blockchain, which maintains a tamper-resistant record of transactions and keeps track of who owns what. Public blockchains are usually decentralized, which means they operate without a central authority such as a bank or government.

The term cryptocurrencies comes from the cryptographic processes that developers have put in place to guard against fraud. These innovations addressed a problem faced by previous efforts to create purely digital currencies: how to prevent people from making copies of their holdings and attempting to spend them twice.

There are many ways to buy cryptocurrency, though the most accessible method for beginners is likely to be a centralized exchange. Centralized exchanges act as a third party overseeing transactions to give customers confidence that they are getting what they pay for. These exchanges typically sell crypto at market rates, and they make money on fees for various aspects of their services.