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What is Ethereum? What is cryptocurrency?

Ethereum is the native cryptocurrency of the Ethereum platform, which is also described as a utility token as it provides access to the Ethereum decentralised operating system. Cryptocurrencies can be split into either: utility tokens; providing access to the services provided by a particular project, security tokens; something representing an underlying asset, or a payment token (like Bitcoin).

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A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units, and corroborate transfers. In short, cryptocurrency is a decentralised electronic currency. Cryptocurrency is stored in a ‘wallet’, which can take various forms. For instance, Ether coins can be stored in an online wallet, or alternatively in an offline electronic wallet, and it can even be stored physically in hardware.

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