What is Cryptocurrency?

Cryptocurrency is one of the most exciting financial innovations in the recent time. It is reshaping how we think about money, ownership, and value in the digital age. For students, it is not only a subject of personal curiosity but also a field with increasing academic and professional relevance. Hafiz Rana, Senior Lecturer in Finance explains what cryptocurrency is, how it works, and why students should pay attention to it.

What is cryptocurrency?

At its core, cryptocurrency is a type of “digital asset” secured by cryptography and tracked on a blockchain. A decentralised database maintained by computers worldwide. Unlike dollars or euros, most cryptocurrencies aren’t currencies in the traditional sense. Instead, they function more like digital property you can truly own, transfer, and trade without banks or intermediaries.

The basics of cryptocurrency

When you buy a cryptocurrency, you are essentially acquiring a “unique digital record” on a blockchain, much like owning a share with a serial number. The key differences are:

• No central authority: Supply is programmed in advance by code, not by governments or companies.
• Decentralised record keeping: Ownership is validated by thousands of independent computers.
• Permissionless access: Anyone with an internet connection can own crypto, often without needing to share personal details.
• True ownership: Unlike bank balances or digital shares, crypto held in your personal wallet cannot be frozen or seized.

Cryptocurrencies fall into two broad categories:

• Coins – native to their own blockchains (e.g. Bitcoin, Ethereum).
• Tokens – built on top of existing blockchains (e.g. many DeFi or gaming assets).

Coins act like the “fuel” that powers blockchains, while tokens are often tied to applications built on those blockchains.

How to monitor cryptocurrency prices

Crypto markets move quickly, so monitoring prices is crucial. Here is how to stay on top:

• Price trackers: Use trusted platforms like CoinMarketCap, CoinGecko, or TradingView for real-time data.
• Market metrics: Pay attention not just to price, but also market capitalisation, trading volume, and circulating supply.
• News and narratives: Market value often shifts around narratives (“digital gold” for Bitcoin, or “decentralised cloud storage” for Filecoin). Following industry news and trends helps explain price moves.
• Alerts and tools: Many apps let you set alerts, so you do not miss sudden swings.

Learning more through BCU’s undergraduate and postgraduate Finance courses

Understanding cryptocurrency is not just about technology, it is also about finance. Courses like BCU’s undergraduate and postgraduate finance courses can give students the skills to;

• Analyse risk and value in fast-moving markets.
• Understand the regulatory and ethical frameworks around finance and digital assets.
• Apply accounting and financial analysis tools to evaluate crypto projects more critically.

This knowledge builds a solid foundation for anyone looking to engage with cryptocurrency, whether academically or professionally.

Tips for students interested in cryptocurrency

If you’re curious about crypto, here are some tips:

• Start small: Experiment with small amounts before committing more.
• Research deeply: Look at white papers, project teams, and whether a token has real utility beyond speculation.
• Beware of hype: Not all tokens have value, focus on those with strong fundamentals or compelling narratives.
• Stay secure: Always use trusted exchanges but move long-term holdings into a personal wallet.
• Keep learning: The crypto space evolves rapidly. Stay updated through academic study, reliable media, and peer discussions.

Looking ahead

Cryptocurrency is likely to be more than a passing trend, it represents a new class of digital assets. Understanding its foundations, from how coins and tokens work to why narratives drive value, is essential for anyone curious about finance in the 21^st century. For students, it is not only an opportunity to explore an innovative space but also to apply academic knowledge from accounting, finance, and economics in real-world contexts. Approach crypto with caution, curiosity, and a willingness to keep learning, and it could become a valuable part of your financial literacy journey.