Cryptocurrency: What it is, how it works, and simple safety tips

Cryptocurrency

What it is

Cryptocurrency is internet-native money. People send it directly to each other - no bank in the middle - using a public ledger called a blockchain. Payments live as digital records, and your coins are controlled by your wallet (really: your private keys). Overview: see our  
cryptocurrency guide

How it works 

  • Addresses: like email for money; you share these to receive funds.

  • Keys: your private key proves you own the coins—lose it, lose access.

  • Blockchain: a shared database that confirms, time-stamps, and locks in every transaction.

  • Fees & speed: vary by network and congestion (some seconds, some minutes).

Wallet basics

  • Custodial wallets (exchanges): easy to start, but a company holds your keys.

  • Self-custody wallets: you hold the keys—more control, more responsibility.

  • Backups: write down the seed phrase and store it safely, offline.

Risks to know

  • Volatility: prices can swing fast.

  • Scams & phishing: fake sites, giveaway traps, support impersonators.

  • Theft: stealers and clipboard malware target wallets and seed phrases.

  • Irreversible: blockchain transfers can’t be “charged back.”

Stay safe 

  • Verify URLs; use bookmarks for exchanges/wallets.

  • Never type a seed phrase into a website or share it with “support.”

  • Prefer a hardware wallet for serious amounts.

  • Turn on MFA (app or security key) on exchanges; use unique passwords.

  • Keep your device and browser updated; avoid cracked software.

    Glossary (A–Z)

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