Bitcoins are a type of cryptocurrency or digital currency that are used for the online transaction. Banks do not recognize them or do not have legal recognition by any government. They are not real money, yet each bitcoin value can go up to several thousand dollars. They are the fast-spreading currency in the online world. Many traders use bitcoins for accomplishing their online exchange of money. Unlike the usual centralized banking system, Bitcoins are handled through a decentralized ledger system, Blockchain, which has a powerful network of computers doing multiple transactions simultaneously. The companies doing this, remain discrete. Each bitcoin token comprises a public key and a private key that is connected with a complex mathematical encryption algorithm.
They are relatively safe and transactions are faster than in traditional banks.