Cryptocurrency is a digital currency designed to act as a medium of exchange, a unit of account, a store of value, and to serve a range of other purposes, all with the aid of cryptography.
Although greatly varying by design, cryptocurrencies are usually based in electronic networks of nodes, which are often structured as peer-to-peer (P2P). Each participant of the network may perform the functions necessary for the cryptocurrency to operate. This is done using automated software via dedicating a part of the participant’s computing power.
Cryptography is used to ensure proper generation of the cryptocurrency units, to secure transactions, and the overall functioning of the underlying infrastructure.
The most famous example of a cryptocurrency is Bitcoin. It is customary to call all other cryptocurrencies altcoins (alternative coins).
In Forex trading, cryptocurrencies are used both as a method of payment (to deposit and withdraw funds) and as a trading instrument, forming pairs with other cryptocurrencies and currencies.