What is cryptocurrency in simple words?

What is cryptocurrency in simple words?

Cryptocurrencies are virtual money, which does not have any physical form, i.e., they are not issued as coins or banknotes. Digital assets, acting as a medium of exchange, are called as such. Cryptography is used to protect transactions and operations, as well as prevent the formation of new monetary units. Cryptocurrencies are classified as digital, alternative, and virtual currencies from the financial point of view.