Crypto (short for cryptocurrency) is a type of digital money that runs on decentralised computer networks rather than through a single bank or government. Instead of a central authority keeping the record of who owns what, that record — called a blockchain — is shared across many computers at once.
The key ideas
- Blockchain: a shared, tamper-resistant record of transactions.
- Decentralisation: no single company or person is in charge of the network.
- Tokens/coins: the units you can hold or transfer, such as Bitcoin or Ether.
People use crypto for different reasons — some see it as a long-term holding, some use it for payments or apps, and many are simply curious. It is important to understand that crypto is high risk: values move sharply, and there is far less protection than with a bank account.
Before you start
Learn the basics first, only consider money you can afford to lose, and be alert to scams. Our UK crypto safety guide explains the protections you do and don’t have.
Crypto is high risk and largely unregulated in the UK. You could lose all the money you invest, and most crypto is not protected by the FSCS or the Financial Ombudsman Service. This is educational information only, not financial advice. Only invest what you can afford to lose.