A cryptocurrency is a virtual asset secured and operated on the principles of cryptography and often decentralized i.e run without any single authority or entity’s influence.
Typically, cryptocurrencies are based on a blockchain, and the cryptocurrency network features a group of connected devices called 'nodes.’ Every transaction initiated and completed using a cryptocurrency network is saved in this blockchain.
A cryptocurrency is usually a community-driven decentralized network for exchange of monetary value, ownership and other analogues. Since it is decentralized, there is no influence of central authorities like governments and financial institutions in the day to day functioning of the cryptocurrency. Instead, a cryptocurrency relies on its ‘blockchain’ for basic operations such as transaction processing, coin issuance, etc.
These operations on the blockchain are governed by predefined protocols that determine the fate of all activities on the network.
Bitcoin is the first, and biggest cryptocurrency. Ethereum is another popular cryptocurrency.