What is Cryptocurrency?

Cryptocurrency is like digital money that exists only online and isn’t controlled by any bank or government. Imagine it as a video game token that you can use to buy items in the game, but instead, it can be used for real-world transactions. Think of it like having a special kind of gift card. You can load it up with money, and then use it at different stores, but instead of being tied to a bank, it’s all managed through a technology called blockchain. This is a digital ledger that keeps track of every transaction, ensuring that no one can fake or duplicate the money. Here’s how it works: 1. You create a digital wallet to store your cryptocurrency. 2. You can buy cryptocurrency with regular money or earn it through various means. 3. When you want to make a purchase, you send the cryptocurrency from your wallet to someone else's wallet. 4. The transaction gets verified by many computers on the network, confirming that you have the funds to spend. 5. Once verified, the transaction is added to the blockchain, making it permanent. This matters because it allows people to send money quickly and directly to each other without needing a middleman like a bank. It's secure, fast, and can be accessed from anywhere with the internet. Does that make sense? Want to dive deeper into how transactions are verified or what makes cryptocurrencies different from regular money?