Cryptocurrency

A cryptocurrency is a virtual or digital currency which can be used as a medium of exchange. Unless a specific condition is fulfilled no one can change the limited entries in a database.
As cryptocurrency becomes more popular in usage, tax authorities, law enforcement agencies and legal regulators are trying to understand the concept of cryptocurrency and trying to find the places where they exactly fit the existing rules and regulations.
Following are some of the major cryptocurrencies,

Bitcoins

Bitcoins is a virtual currency which was created in 2009. Generally, the concept of Bitcoins is to do lower transaction fees than the online payment methods and this is operated by a decentralized authority unlike, government issued currencies.

Ripple

Ripple is acting both as a cryptocurrency and a digital payment system for financial transactions. This was first established in 2012. Ripple is more like Real Time Gross Settlement System (RTGS system) which engages in remittance as well as currency exchange.