What is cryptocurrency?
Cryptocurrency is digital money. Unlike the euro or dollar, it isn't issued by a government or controlled by a central bank. Instead, it runs on a technology called blockchain — a public record of every transaction ever made, maintained by thousands of computers around the world simultaneously.
Because no single person or organisation controls it, cryptocurrency is described as decentralised. This means there's no bank to freeze your account, no government that can print more of it and inflate its value away, and no borders — you can send crypto to someone in Japan just as easily as someone next door.
💡 Think of blockchain as a shared Google spreadsheet that thousands of people have a copy of. Everyone can see new entries being added, but nobody can secretly change old ones.
The most well-known cryptocurrencies
There are tens of thousands of cryptocurrencies, but a handful dominate the market:
- Bitcoin (BTC) — the original cryptocurrency, created in 2009. Often described as "digital gold" due to its fixed supply of 21 million coins. It consistently holds the largest share of the total crypto market.
- Ethereum (ETH) — more than just a currency. Ethereum is a programmable blockchain that allows developers to build apps, smart contracts, and decentralised finance tools on top of it.
- Stablecoins (USDC, USDT) — cryptocurrencies pegged to the US dollar. Useful for moving money without exposure to price swings.
How do I get started?
Do your research first
Understand what you're buying before spending a cent. Read our guides on exchanges, wallets, and how to research a project.
Choose a reputable exchange
An exchange is where you buy crypto using regular money. Start with Coinbase or Kraken. See our exchanges guide for a full comparison.
Set up a wallet
A wallet stores your crypto. If you're just starting out, using the wallet built into your exchange is fine. Once you're holding larger amounts, consider a hardware wallet.
Buy a small amount first
There's no minimum — you can buy €10 of Bitcoin. Start small, get familiar with how it all works, then scale up if comfortable.
Secure your account
Turn on two-factor authentication (2FA) on every platform you use. Never share your seed phrase with anyone, ever.
⚠️ Important: Crypto is a highly speculative, volatile asset. Only invest money you can genuinely afford to lose. Prices can fall 50–80% in a bear market. This site is for educational purposes only and does not constitute financial advice.
Is crypto anonymous?
Partially — and this is commonly misunderstood. Bitcoin transactions are pseudonymous, not anonymous. Every transaction is permanently visible on the public blockchain. Your name isn't attached to a wallet address, but if your identity is ever linked to an address (e.g. via a KYC exchange), that transaction history becomes traceable.
Can I use crypto to buy things?
Yes, though adoption varies. Major companies including Microsoft and Expedia accept Bitcoin. El Salvador made Bitcoin legal tender in 2021. However, most people currently hold crypto as an investment rather than spending it day-to-day, partly because prices fluctuate too much for it to be practical as everyday money.
What's next?
Now that you understand the basics, the logical next steps are to learn how to buy crypto, understand how wallets work, and pick an exchange to use. Take your time — there's no rush.