Cryptocurrency is a type of digital currency that uses cryptography to secure transactions. It operates independently of traditional banking systems and is typically built on decentralized networks called blockchains.
The first and most well-known cryptocurrency is Bitcoin, launched in 2009 by an anonymous figure known as Satoshi Nakamoto. It was created in response to distrust in traditional financial institutions during the 2008 global financial crisis.
Most cryptocurrencies are powered by blockchain technology, a decentralized ledger that records all transactions transparently and securely. Transactions are verified by a network of computers called nodes.
To buy crypto, users typically use exchanges like Coinbase, Binance, or Kraken. Once purchased, crypto can be stored in:
Cryptocurrency is known for its volatility. Prices can rise or fall dramatically in short periods. Regulatory environments also vary by country, and scams or hacks can occur.
It depends on the country. Most developed nations allow crypto trading, but rules vary widely.
Yes. The market is extremely volatile, and there are no guarantees of profit.
In many countries, profits from crypto are considered taxable income or capital gains.
Cryptocurrency has grown from a niche concept to a global financial phenomenon. While it brings opportunities for innovation and decentralization, it also comes with significant risks. Whether you're curious or planning to invest, understanding the basics is the first step to navigating the world of crypto.
Published: June 2025