Bitcoin was created as a digital peer-to-peer payment system that gives a possibility to users to store, send, and receive money without the need of any financial intermediary such as a bank. This way, the term “cryptocurrencies” was born.
With the birth of Ethereum and the boom in initial coin offerings, newly issued tokens were no longer purely digital currencies but transformed into a list of different tokens with different functions.
Currency Tokens
Currency tokens, coins, or cryptocurrencies are digital tokens that go into online currencies that could be used to buy and sell products and services and could be held as a store of value.
The main differences between cryptocurrencies and digital versions of fiat currencies are that the cryptocurrencies are decentralized and that is why are functioning independently of a central bank, they don't require the use of a financial right now, and they use cryptography and a peer-to-peer network to ensure transaction security.
The big example of the world’s leading digital currency is, of course, bitcoin.
Good basics to know..