Cryptocurrencies are digital currencies that exist on a decentralized system called a blockchain. Cryptocurrency is an umbrella term for all digital currencies. These can be accessed through the use of crypto wallets.

What is the relationship between cryptocurrencies and blockchain?

In 2016, Fabricio Santos described the concept of blockchain as a bank vault filled with rows of glass safe deposit boxes where everyone can see the contents without being able to Access its content. Continuing the metaphor, he explained that when a person opens a new safe, they receive a key that is unique to that safe, but copying that key does not copy the contents of the safe; it copies the key. It only provides access. 

Advantages of Cryptocurrency

Secure, instant transactions

Cryptocurrency is rooted in privacy. This means that you do not need to provide your personal information to every entity with which you transact. Using encryption protects your financial and personal data because it isn't shared with other parties who might want to access your information (think: advertisers and other entities you don't interact with). Cryptocurrencies also allow for near-instant transactions. Since users have instant access to the contents of their crypto wallets, they can reduce the typical 3-4 day wait time for traditional bank transfers.

Choose to keep your cryptocurrencies yourself