Understanding Cryptocurrency and Blockchain
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Crypto & Blockchain
Cryptocurrency is digital money secured by cryptography and recorded on a blockchain. Bitcoin was the first; thousands now exist.
How They Relate
Blockchain is the technology (the ledger); cryptocurrency is one application (digital money on that ledger).
How a Crypto Transaction Works
- You sign a transaction with your private key.
- It's broadcast to the network.
- Miners/validators verify and add it to a block.
- The block joins the chain — transaction is permanent.
Key Concepts
| Term | Meaning |
|---|---|
| Wallet | Stores your keys |
| Private key | Secret — controls funds |
| Public key | Your address to receive |
| Gas | Transaction fee (Ethereum) |
Popular Cryptocurrencies
- Bitcoin — digital gold, store of value.
- Ethereum — smart contracts & dApps.
- Stablecoins — pegged to USD (USDT, USDC).
FAQs
Is crypto safe?
The blockchain is secure, but lost keys or scams can cost you funds. Never share your private key. More in our Blockchain guides.
What is a wallet?
Software/hardware that stores your keys and lets you send/receive crypto.