Cryptocurrency markets are decentralized, which means they are not controlled, delivered, or created by a central authority such as a government or a central bank. Instead, they run through a grid network of computers. However, cryptocurrencies can be bought and sold via exchanges and stored in ‘wallets.’

In contrast with traditional currencies, cryptocurrencies like Bitcoin, Litecoin, etc. exist only as a shared digital track of ownership, stored on a blockchain. When two users want to send crypto coins to one another, they send it to that user’s digital wallet. The transaction is considered fully completed when it is verified and added to the blockchain through a process called mining. This is how new cryptocurrency tokens are usually created.