# Chapter 1, Section 3: Cryptocurrency De-mistified

###### tags: `Chapter 1`

Cryptocurrency is an [[intangible]], digital currency on the blockchain.

This means that crypto is not run by governments or banks. Crypto is run decentrally.

**The Details**
Cryptocurrency relies on blockchain technology to be secured, transferred, and created.

Without the blockchain, crypto would not exist.

For that reason, cryptocurrency is a [[peer-to-peer (P2P) system]].

Cryptocurrency is stored in digital wallets*, and can be bought with [[FIAT]] on crypto exchanges.

## Terms To Nutshell
1. Intangible

Money is backed by the Government. Stocks are backed by companies.

Cryptocurrency is not backed by any physical assets or entities.

Hence, cryptocurrency investors believe in the intangible benefits it provides.

2. Peer-to-Peer System (P2P)

A peer-to-peer system is one that allows two parties to transact without a third party, or a middleman.

A bank loan is not P2P, because they as the third party can intervene.

In crypto, transactions are P2P, cutting away third-party intervention.

3. FIAT

FIAT is another word for money issued by Governments. (E.g. USD, GBP)

4. Crypto Stored In Digital Wallets

Technically, cryptocurrency is NOT really inside your wallet.

All cryptocurrency is stored on the blockchain network.

You simply hold the keys (via your wallet) to access these tokens.