Cryptocurrency is a digital (virtual) currency that does not have physical expression. The unit of such currency is “coin”, which means “coin” in English. At the same time, the coin is protected from forgery, since the coin is encrypted information that cannot be copied. Using cryptography led to the use of the prefix “crypto” in the name of the cryptocurrency . It can be said that cryptocurrency is a digital (virtual) currency that is used by participants in the turnover to make payments on the Internet.
At the same time, the peculiarity of the monetary unit is its protection against falsification, since data that is not subject to duplication is encrypted in it. The difference between cryptocurrencies and ordinary money is in electronic form. The main difference between electronic cryptocurrency and ordinary money in electronic form is as follows: in order for ordinary money to appear on the account in electronic form, it must first be physically deposited into the account, for example, through a bank or payment terminal. That is, for a regular currency, the electronic form is one of the forms of physical embodiment.
Cryptocurrency is issued directly on the Web and is in no way associated with any ordinary currency or with any state currency system. Thus, we can say that “cryptocurrency is a type of electronic money.
You can find out more here. - https://www.irs.gov/businesses/small-businesses-self-employed/virtual-currencies
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