What is Cryptocurrency?
Cryptocurrency is a type of digital money that only exists online. Unlike dollars or coins in your wallet, it is not printed by a government or controlled by a central bank. Instead, it runs on computer networks that record every transaction on something called a blockchain. A blockchain is like a public digital ledger that anyone can see, and it helps make sure no one cheats by spending the same money twice.
The first cryptocurrency, Bitcoin was created in 2009 as a way for people to send money directly to each other without going through a bank. Since then, thousands of other cryptocurrencies have been created, each with their own features and goals. Some, like Ethereum, are designed to let people build apps on top of their blockchain. Others are designed to be faster, cheaper or more private.
For everyday people, the appeal of cryptocurrency is that it can be traded 24/7, it can move across borders quickly, and it gives investors a new way to try and make returns. It also comes with risk, like big price swings and scams, which beginners should be aware of before investing.