What is cryptocurrency, how does it work – and what’s the point?

Published

1 year ago

October 28, 2024

What is cryptocurrency, how does it work – and what’s the point?

Cryptocurrency has been around for more than 15 years, and there is more than £1.8 trillion-worth of the stuff floating around on the internet.

Yet for all the tales of rows and riches that have engulfed crypto in recent years, not that many people can tell you what it actually is.

Even fewer can answer the simple question: what’s the point?

The PA news agency breaks it down.

– What is cryptocurrency?

Crypto is a type of digital money designed to be used over the internet. It does not exist physically, like dollars or pounds.

There are many types of crypto, but you have probably heard of the biggest and oldest one: Bitcoin.

Invented in 2008, a Bitcoin is essentially a computer file which is stored on an app, which functions as a digital wallet. There are many of these apps on the market.

You can send and receive crypto with other people – and it is frequently traded for money. Lots of it.

– How does it work?

Bitcoin is decentralised. That means it is not managed, recorded or stored by any one entity, like a national government or a bank.

Instead, every record is logged on a shared list called a blockchain.

Think of it like an online spreadsheet which no single person controls. Instead, it is shared around people who use it all over the world.

Those people get small financial rewards for keeping the ledger accurate and up-do-date. It is immutable, which means it is virtually impossible to go back and edit previous entries (or “blocks”).

This makes it attractive to people who want to break free of traditional currencies, and the influence that governments, central banks and financial institutions hold over them.

– What’s the point?

While there is a small, growing number of places that accept crypto as a real-world payment method, you’ll struggle if you try to use it to pay for most goods and services in the UK.

But the fact that you do not need to use a bank means that you can use crypto to operate outside the traditional financial system.

This appeals to people who want to send money across borders often, for example, where intermediaries often take a cut on transactions using traditional money.

It also makes it easier to act anonymously. Many crypto service providers do not have the same identity checks as banks.

As a result, it is generally harder to track where crypto has come from or where it is going than traditional currencies.

Unfortunately, that means criminal gangs or even terrorists often use it to launder money. Crypto is also sometimes used to transact illegally with sanctioned countries like Russia.

– Why do some people like it so much then?

Many people love crypto because it is extremely volatile, meaning you can make vast amounts of money very quickly by trading it at the right time.

One whole Bitcoin in October 2023 was worth about £27,000. Just a year later, that has nearly doubled.

Now consider if you had bought dozens of Bitcoins a decade ago, when they were valued at about £260, and you can see why some people are evangelical about it.

In that sense, it is different to investing in traditional assets, like stocks and shares, which are generally much more stable.

– Is it a safe investment?

No. Crypto has already been through several monumental boom-and-bust cycles already, which have done huge amounts of harm.

Millions of people put their life savings into cryptos like Bitcoin thinking it would make them better off.

But huge crashes in value in 2018 and 2022 left people’s finances in ruins – and the fact that it is still relatively unregulated means there have been a lot of scams.

The most high profile was in 2022, when FTX, the crypto exchange founded by Sam Bankman-Fried, collapsed.

Mr Bankman-Fried was later sentenced to 25 years in prison for defrauding customers out of billions of US dollars.

So while Bitcoin is near its record price again now, it is still generally considered extremely risky.

As the old adage goes: never invest more than you can afford to lose.

OKX Invests in Vietnam Exchange CAEX Ahead of Crypto Pilot

Published

3 hours ago

April 11, 2026

Press Room

OKX Invests in Vietnam Exchange CAEX Ahead of Crypto Pilot

Key Takeaways

OKX invested in CAEX to meet Vietnam’s $380 million pilot requirement, advancing regulation.
CAEX, backed by OKX and Hashkey, signals a shift to compliant platforms across Southeast Asia.
OKX expands 2026 regulatory push after Malta license, as it aims to lead efforts in shaping Vietnam’s crypto market.

Vietnam’s CAEX Gains OKX Support for Regulated Crypto Push

OKX has taken a strategic stake in Vietnam’s CAEX exchange, positioning itself to support the country’s push toward regulated cryptocurrency trading.

The investment, made alongside local partners including VPBank Securities and LynkiD, as well as Hashkey Capital, will help CAEX meet the financial threshold required to participate in a government-backed pilot program. Vietnam has set a minimum capital requirement of $380 million (VND 10 trillion) for firms seeking to operate within the trial framework.

The partnership signals a growing alignment between global crypto firms and local operators as Southeast Asia moves toward clearer regulatory oversight.

Star Xu, Founder and CEO of OKX, wrote in a blog post, saying,

We expect most Southeast Asian markets to establish clear regulatory frameworks and licensing pathways for digital asset companies. This region is already one of the most important sources of global crypto liquidity. We believe the future of crypto will be built on regulated, local platforms that users can trust, and CAEX represents that future in Vietnam.”

CAEX, formally known as Vietnam Prosperity Crypto Asset Exchange Joint Stock Company, is expected to combine domestic market expertise with international infrastructure and compliance standards. OKX said it will contribute not only capital but also technical support across areas such as risk management, security systems, and liquidity provision.

The initiative comes as Vietnam explores a controlled rollout of digital asset trading under government supervision. While details of the pilot program remain limited, authorities have indicated a preference for well-capitalized and compliant platforms.

OKX’s involvement reflects its broader strategy of working within regulatory frameworks rather than operating outside them. The company has spent recent years securing licenses and approvals in multiple jurisdictions, including registration in the United States and regulated operations across Europe.

Earlier this year, OKX obtained a Payment Institution license in Malta, allowing it to expand crypto payment services across the European Union under established regulatory regimes. The exchange has also pursued approvals in markets such as Singapore and Dubai, where it has built localized platforms tailored to regulatory requirements.

Executives at OKX have framed compliance as central to long-term growth. The firm has increased investment in anti-money laundering controls, customer verification processes, and internal risk systems, aiming to meet institutional standards as the industry matures.

That experience is now being applied to emerging markets. In Vietnam, the focus is on building a platform that can operate within a formal regulatory structure while scaling user adoption.

The investment also reflects a broader shift in the crypto industry. As governments introduce clearer rules, trading activity is increasingly moving toward licensed venues. Market participants are placing greater emphasis on transparency, asset protection, and regulatory oversight.

Southeast Asia remains a key region in that transition, accounting for a significant share of global crypto liquidity. For Vietnam, the CAEX initiative represents an early step in that process. For OKX and its partners, it offers an opportunity to shape the development of a regulated market from the ground up.

If successful, the model could serve as a blueprint for other countries in the region, where demand for digital assets continues to grow alongside calls for stronger investor protections.

Crypto

US Treasury to offer free cybersecurity intelligence to crypto firms

Published

15 hours ago

April 10, 2026

Press Room

The U.S. Treasury Department’s Office of Cybersecurity and Critical Infrastructure Protection has unveiled a new cyber threat intelligence sharing initiative with the cryptocurrency sector in a bid to bolster threat discovery, prevention, and response efforts amid increasingly prevalent and sophisticated intrusions against the industry, according t…

Crypto

Bitcoin and Ether ETFs Add Combined $443 Million in Strong Inflow Day

Published

1 day ago

April 10, 2026

Press Room

Bitcoin and Ether ETFs Add Combined 3 Million in Strong Inflow Day

Key Takeaways:

Bitcoin ETFs saw $358.17 million inflows on April 9, led by Blackrock IBIT, restoring momentum.
Ether ETFs added $85.19 million as ETHA gained $90.94 million, showing selective but rising demand.
XRP lost $661K while Solana saw no flows, suggesting capital is still fluctuating between altcoin ETFs.

Market Turns Decisively Positive for Bitcoin and Ether ETFs

No day is ever the same in the exchange-traded fund (ETF) market, and on Thursday, April 9, the tide turned again. This time, with force.

After a stretch of uneven flows and fading conviction, crypto ETFs snapped back into positive territory, delivering one of the week’s strongest sessions. The recovery was broad, decisive, and led by familiar names.

Bitcoin ETFs recorded a powerful $358.17 million in net inflows, marking a clean reversal from the prior day’s losses. Notably, every major fund contributed, and no outflows were recorded.

Blackrock’s IBIT once again dominated the field, pulling in $269.34 million, roughly three-quarters of total inflows. The scale of that contribution underscored its continued role as the market’s anchor. Fidelity’s FBTC followed with a solid $53.33 million, while Morgan Stanley’s newly launched MSBT added $14.87 million, building on its early momentum.

Bitcoin ETFs likely to close the week in green with inflows surpassing outflows so far.

Further support came from Bitwise’s BITB with $11.73 million, Ark & 21Shares’ ARKB at $4.78 million, Vaneck’s HODL with $2.04 million, and Franklin’s EZBC at $2.08 million. Trading volume reached $1.99 billion, and net assets climbed to $93.29 billion.

Ether ETFs mirrored the rebound, though with a more mixed internal picture. The group posted $85.19 million in net inflows, driven by strong demand for select funds.

Blackrock’s ETHA led with $90.94 million, while its ETHB product added another $13.67 million, continuing its steady rise in investor preference. Grayscale’s Ether Mini Trust contributed $9.67 million.

Yet selling pressure persisted elsewhere. Fidelity’s FETH recorded a $20.98 million outflow, followed by 21Shares’ TETH with $5.53 million. Smaller outflows were seen in Franklin’s EZET at $1.68 million and Grayscale’s ETHE at $900,440. Despite these exits, inflows held firm. Trading volume came in at $831.08 million, with net assets closing at $12.69 billion.

Outside the majors, activity was limited. XRP ETFs posted a modest $661,160 outflow, entirely from 21Shares’ TOXR. Trading volume stood at $11.03 million, with net assets at $955.13 million.

Solana ETFs remained inactive for the session, with no recorded flows. Net assets held steady at $803.03 million.

The broader pattern is becoming clearer. Capital is returning, but it is concentrated. Investors are favoring scale, liquidity, and established names, particularly in bitcoin and select ether products. The market is not fully stable, but confidence is rebuilding in visible pockets.