Crypto-currency can be defined as a digital currency that uses cryptography for security and anti-counterfeiting measures. Words like private keys and public keys are used for transfer of these currencies between individuals. Crypto currency is said to be a flat currency which means users need to agree up on the value and the medium of exchange, before initial use. As this currency is not tied to a particular country, the value cannot be controlled by any country’s central bank.
For Example: The most common crypto-currency is Bit-Coin. Value of the currency fluctuated with demand and supply. Just like price of precious metals such as gold, silver, and platinum.
Crypto-currency transactions are anonymous, untraceable and thus have became highly popular for illegal transactions like drug trafficking, payment mode for kidnapping etc, as this currency has no central repository, it is not easy to keep track of where the money came from and where it got transferred. Transactions with these currencies do not come under any law enforcement guidelines and payment procedures have no jurisdiction. Primary strength of crypto currency is anonymity, because of which the power shifts to individuals from institutions even though it is used for illegal reasons.