Cryptocurrency is digital money secured by cryptography and recorded on a blockchain — a shared ledger spread across thousands of computers. Unlike money in a bank, most cryptocurrencies aren't controlled by any single company or government.
How does crypto work?
When you send cryptocurrency, the transaction is broadcast to a network that verifies and records it on the blockchain. Because the ledger is public and copied across many computers, it's extremely hard to fake or reverse. You hold your crypto in a wallet, protected by a private key that only you control.
The main types of cryptocurrency
- Bitcoin (BTC) — the original, often called digital gold.
- Ethereum (ETH) — a platform for apps and smart contracts.
- Stablecoins (USDT, USDC) — pegged to the US dollar to stay steady.
- Altcoins — thousands of other projects with different goals.
How do you buy cryptocurrency?
You buy crypto on an exchange: sign up, add funds with a card or bank transfer, and pick the coin you want. Choose one with low fees, strong security, deep liquidity, and simple tools for beginners.
What are the risks?
Crypto prices are volatile and the space attracts scams. Stick to reputable exchanges, turn on two-factor authentication, never share your keys or recovery phrase, and only invest what you can afford to lose. This is general information, not financial advice.