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Cryptocurrency In 5 Minutes - Cryptocurrency Explained - What Is Cryptocurrency? - SimplilearnCryptocurrencies are digital tokens. They are a type of digital currency that allows people to make payments directly to each other through an online system. Cryptocurrencies aren't backed by a government or central bank. Unlike most traditional currencies, such as the U.S. dollar, the value of a cryptocurrency is. With many cryptocurrencies, on the other hand, there is no need for a trusted central agent. Instead, they rely on distributed ledger technology, such as.