It’s a digital asset that’s exchanged in a decentralized process. Independent of any state or central bank, it shares the main characteristics of a traditional currency (exchange rate, value reserves, unit of account).
Cryptocurrency is virtual money. It is not produced by any central authority and is exchanged within a decentralized system (e.g., peer-to-peer network), reliant on blockchain technology. Cryptocurrency uses cryptographic mechanisms to securely transmit value.