Cryptocurrencies or cryptocurrency are encrypted digital means of payment for business and private monetary transactions. They exist only in digital form, but not in physical form. Cybermoney is used in online banking, online billing and as an online wallet, but also in mobile business and mobile banking.
Cryptocurrencies are cybermoney, they are bank-independent currencies that can be exchanged for real currencies. A cryptocurrency is assigned a fixed, unchangeable number of adequate cryptovalues. The number cannot be increased. The value is not set by a central bank or other financial institutions. To secure cryptocurrency transactions, some use tokens or security tokens, and work with a blockchain for security. This is a secured transaction process where transactions are stored in each block. The actual currency product is coins, which are used for payment, for example. In the transactions, any subset of a cryptocurrency unit can be transferred. For example, one thousandth of a unit.
The best-known cryptocurrencies include Bitcoin, Tether and Ethereum. Besides Bitcoin, there are about a hundred cryptocurrencies, many of which have acceptance issues. Bitcoin transactions over peer-to-peer networks are secured by encryption with hash tables. Bitcoins are stored in online wallets, which also store the addresses of sending and receiving users using a private key process.
Cryptocurrencies can be used to perform cashless transactions over the Internet. The transaction protocols are cryptographically secured. There are various alternatives to the best-known cryptocurrency, bitcoins. These are called Altcoins, which stands for Alternative to Bitcoin. These alternatives include the cryptocurrencies Litecoin, Dogecoin, Blackcoin, Freicoin, Peercoin, Vericoin, Myriad, Ripple, BitShares, Bytecoin, Namecoin and many more.