Cryptocurrency is a type of digital or virtual money that encrypts data for security using cryptography, which is a secure communication technique. It is based on a blockchain, a decentralized ledger that records and validates transactions, and it runs separately of a central bank. On cryptocurrency exchanges, you can buy and sell cryptocurrencies that can be used as a means of exchange, a store of wealth, or as an investment. Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are well-known examples.