What Is Cryptocurrency? A Beginner’s Guide

Cryptocurrency is a type of digital money that exists only on the internet. Unlike traditional money, such as dollars or euros, cryptocurrencies are not controlled by any government or bank. Instead, they are managed using a technology called blockchain, which ensures security and transparency.

Over the past decade, cryptocurrencies have gained a lot of attention. Some people see them as a revolutionary form of money, while others are still trying to understand what they are and how they work. In this article, we will break down everything you need to know about cryptocurrency in simple terms.

Cryptocurrency is built on a special technology called blockchain. A blockchain is like a digital ledger, a record of transactions that is stored across many computers around the world. This makes it nearly impossible for anyone to cheat or change the history of transactions.

Each cryptocurrency transaction is recorded on this blockchain, and once a transaction is confirmed, it cannot be reversed. This is different from traditional banking systems, where transactions can sometimes be reversed or canceled.