This article wants to be only informative on the real meaning of the term and its features, obviously to explain it well you need a much more detailed article than this; as the title says it is "simply explained".
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What is the meaning of cryptocurrency?

The term consists of two words: crypto and currencies, so it is a "hidden" currency, that is, it is visible and usable only by knowing a computer code; cryptocurrencies can be understood both as real currency (therefore currency) to buy goods and services or to convert traditional currencies, and as an asset to invest by trading on online platforms.

Cryptocurrencies were created to make the monetary system decentralized, therefore not subject to central powers such as governments and banks. Furthermore, if there is consensus among the participants in the relative transaction, it can be exchanged in a peer-to-peer manner (ie between two devices directly, without the need for intermediaries) to purchase goods and services.

Another classification in use provides for the division between closed, unidirectional and bidirectional virtual currency and the difference between the three lies in the possibility or otherwise of being able to exchange cryptocurrency with legal tender currency and in the type of goods and services that can be purchased.

What are the features?

The fundamental characteristics that make a cryptocurrency recognizable are:

• Decentralized system: compared to normal traditional currencies, there is no central bank that deals with printing money and controlling its flow;
• Anonymity: many cryptocurrencies manage to guarantee a high level of anonymity in the exchanges that take place between users;
• Limited number: most cryptocurrencies have a limited number of currency that can be produced;
• Security: the transactions that take place are 100% secure, thanks to the particular network they use;
• Online only: cryptocurrencies are digital currencies, therefore they do not include banknotes or coins, in fact they are contained in electronic wallets, called wallets. All transactions, in fact, take place online, even if they are also becoming means of payment in physical stores, or a tool to change and withdraw cash;
• Protocol: that is a computer code that specifies the way in which participants can carry out transactions;
• Ledger (blockchain): which stores the user's transaction history;
• Decentralized participant network update, store and consult transactions;