🌐 What Is Cryptocurrency?
Cryptocurrency is a digital form of money that exists only online. It is protected by cryptography, which makes it secure and difficult to counterfeit.
🔑 Key Basics
- Decentralized
Most cryptocurrencies are not controlled by any government or bank.
Instead, they run on a technology called blockchain.
- Blockchain Technology
A blockchain is like a public digital ledger where all transactions are recorded.
Everyone in the network can see the record (not personal info, only transaction data), making it transparent and secure.
- Digital Ownership
Cryptocurrency is stored in digital wallets.
A wallet has:
- A public key (like your bank account number)
- A private key (like your ATM PIN — must be kept secret)
- Mining / Validation
Cryptos like Bitcoin are created through mining, where computers solve puzzles to verify transactions.
Other coins use staking, where users lock their coins to validate transactions.
- Volatility
Crypto prices rise and fall very fast.
This makes it risky but also allows for high potential rewards.
- Use Cases
Cryptocurrency can be used for:
- Online payments
- Investment
- International transfers
- Smart contracts (e.g., Ethereum)
- Gaming, NFTs, Web3 apps
- Types of Cryptocurrencies
- Bitcoin (BTC) – first and most popular
- Ethereum (ETH) – smart contracts, decentralized apps
- Stablecoins (USDT, USDC) – tied to the value of the US Dollar
- Altcoins – thousands of other coins with various purposes
🧠 In Simple Terms
Cryptocurrency = Digital money + Secure math + No middleman
Blockchain = A record book everyone can trust
