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Guide · Crypto

What Is Cryptocurrency? A Complete Beginner's Guide

What exactly is cryptocurrency, how does blockchain work, how does Bitcoin differ from Ethereum, and how do you start safely?

What is cryptocurrency?

A cryptocurrency is a digital asset that lives on a decentralized computer network without needing a central authority (government or bank). Its value is set by supply, demand and trust in the network. The best-known example is Bitcoin, but thousands of different cryptocurrencies exist today.

What does a blockchain do?

A blockchain is a transparent, tamper-evident ledger of transactions maintained by thousands of computers spread across the world. When a transaction is made, the network verifies it and appends it to the chain. Once recorded, it's practically impossible to alter or delete.

Popular types of cryptocurrency

  • Bitcoin (BTC): The first and most valuable cryptocurrency. Often called "digital gold" and capped at 21 million coins.
  • Ethereum (ETH): More than payments — a platform that runs programmable applications via smart contracts.
  • Stablecoins (USDT, USDC): Pegged 1:1 to the US dollar. Used to reduce price volatility.
  • Altcoins: Every coin that isn't Bitcoin — BNB, SOL, XRP, ADA and so on.
  • Memecoins: Community-driven coins with little fundamental value and extreme volatility.

What is crypto used for?

  • Fast, low-cost international money transfers
  • A hedge against inflation (debated, mainly for BTC)
  • Decentralized applications (DeFi, NFTs, games)
  • Speculative investment
  • Censorship-resistant value transfer

Where is it stored? Wallet types

  • Exchange wallet: Convenient but the exchange controls your coins ("not your keys, not your coins").
  • Software wallet (Metamask, Trust Wallet): Runs on your device — you hold the keys.
  • Hardware wallet (Ledger, Trezor): The safest option. Keys stay on a device that never connects to the internet.

Where to track prices

Crypto prices change every second. Track live prices, volume and 24-hour changes on the NexPrices Crypto screen, save your coins to Favorites and set alerts on price levels.

Risks

Cryptocurrency is highly volatile — 20% moves in a single day are common. Never invest more than you can afford to lose. Watch out for scam projects, hacked exchanges and rug-pulls.