What are cryptocurrencies?

What are cryptocurrencies? Cryptocurrencies are virtual currencies, with no physical equivalent, that use cryptography to secure transactions and payments and to control the creation of new monetary units. How cryptocurrencies work and what they are used for? Cryptocurrencies are decentralized digital assets, since they are not controlled or backed by any central bank, and their exchanges do not require intermediaries. The control of cryptocurrency transactions depends on a decentralized database, usually a blockchain. Cryptocurrencies are used as an alternative means of payment to legal tender and more frequently as an investment. But, unlike other financial assets, cryptocurrencies are not subject to any specific regulation, are not backed by a public authority, nor are they covered by any consumer protection mechanism.