What is a cryptocurrency?
A cryptocurrency is a digital token that lives on a public ledger (a blockchain). The ledger is shared across many computers. No single company controls it. The network agrees on balances by following open rules.
Blockchains in one minute
- Blocks are batches of transactions.
- Nodes are computers that store and check the ledger.
- Consensus is how nodes agree on the next block (e.g., proof-of-work or proof-of-stake).
- Wallets hold private keys that let you spend your coins.
Common risks
- Volatility: Prices can swing a lot in short periods.
- Custody: If you lose your private key or seed phrase, funds may be unrecoverable.
- Scams & smart-contract bugs: Be careful with links, downloads, and unknown projects.
- Fees & speed: Costs and confirmation times vary by network and congestion.
Nothing here is financial advice. Do your own research and consider your situation before making decisions.
Common cryptos and their symbols
More Crypto Topics
Types of crypto
Coins vs tokens, utility, governance, and stablecoins.
Layer 1 blockchains
Base networks that handle transactions and security (e.g., Bitcoin, Ethereum, Solana).
Layer 2s
Scaling networks that batch/compress transactions and settle to an L1.
Smart contracts
Programs on a blockchain that run exactly as coded once triggered.
dApps
Apps that use smart contracts instead of centralized servers.
DeFi
Lending, DEXs, and yield in smart-contract form.
Decentralization
Spreading power so no single party controls the system.
Wallets & keys
Public addresses, private keys, and seed phrases explained.
Gas & fees
Why transactions cost money and why fees change.
Consensus basics
How nodes agree on the ledger without a central authority.
Mining vs staking
How PoW and PoS secure networks and issue new coins.
On-chain vs off-chain
What happens directly on the blockchain vs elsewhere.
Privacy coins
Coins that hide sender, receiver, and/or amounts.
Oracles
Services that bring real-world data on-chain for smart contracts.
Exchange tokens
Tokens issued by trading platforms for fees, rewards, or governance.
Stablecoins
Tokens designed to track a stable value like the US dollar.
NFTs
Unique digital items with on-chain ownership.
Ordinals
Bitcoin inscriptions that attach data to individual satoshis.
Tokenization of assets
Turning real-world assets (like art or Treasuries) into on-chain tokens.
Bitcoin: store of value?
Why some view BTC like “digital gold.”