What it means
Digital money recorded on a blockchain instead of by a bank, which you can hold and send without a company in between.
Bitcoin, launched in 2009, was the first. Since then thousands have followed, from ether, the currency of Ethereum, to tokens made for a single app.
How it works
Most cryptocurrencies have no issuer behind them and no fixed value: their price is whatever buyers pay, and it can rise or fall sharply in a day.
Stablecoins are the exception. They are issued by a company and backed by reserves, so that one token stays worth one euro or one dollar. EURC and USDC are stablecoins.
You hold cryptocurrency in a wallet, either one you control or an account at an exchange that holds it for you. Transfers settle on the blockchain at any hour and can't be reversed.
In EU law the general term is crypto-asset. Under MiCA, the companies that issue them or offer them to the public need a licence, but your holdings aren't covered by deposit guarantees.
Defied is built for stablecoins, digital euros and dollars, not for trading cryptocurrencies with changing prices. Defied doesn't hold or sell bitcoin. See what a stablecoin is.
Related terms
| Term | What it means |
|---|---|
| Bitcoin | The first cryptocurrency, launched in 2009, with a fixed supply of 21 million coins and its own blockchain. |
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| Crypto-asset | The EU's legal term for a digital token recorded on a blockchain, from bitcoin to stablecoins. |
| Volatility | How much and how fast a price goes up and down. |
This glossary explains terms in general. It isn't investment, tax or legal advice.