Cryptcurrency is a type of virtual currency that uses encryption to ensure more security in financial transactions on the internet. Just as the traditional coin has serial numbers or stripes hidden inside to prevent forgery, the crypto-currency also uses codes that are very difficult to break.
There are several types of virtual currencies, bitcoin being the best known. It is decentralized, which means that money can be transferred from person to person without going through banks or intermediaries. Because there is no authority or banks regulating virtual currencies, fees are lower and you can make transactions in any country.