What is cryptocurrency?
Cryptocurrency is digital value that can be transferred across computer networks. Instead of relying entirely on one central database, many cryptocurrencies use distributed ledgers that allow computers around the world to verify and record transactions.
What is a blockchain?
A blockchain is a shared record of transactions. Transactions are grouped into records and verified according to the rules of that network.
Bitcoin, XRP and other cryptocurrencies
Bitcoin
Bitcoin was designed as a decentralized digital currency with a limited maximum supply. Transactions are recorded on the Bitcoin blockchain.
XRP
XRP is the native digital asset of the XRP Ledger. The network is designed for fast settlement and transferring value between participants.
Stablecoins
Stablecoins are crypto assets designed to track another asset, commonly the U.S. dollar. Their mechanisms and risks vary by issuer and network.
What is a crypto wallet?
A cryptocurrency wallet helps you interact with a blockchain. Your coins are not literally stored inside the wallet. The blockchain records ownership, while the wallet manages the cryptographic keys used to authorize transactions.
Public address
A public address is similar to an account destination. It can generally be shared with someone who wants to send you crypto.
Private key
A private key controls access to funds associated with a wallet. Anyone who obtains the private key or recovery phrase may be able to control those funds.
How does a crypto transaction work?
A simplified transaction looks like this:
- You enter the recipient's address.
- You choose the amount to send.
- Your wallet signs the transaction.
- The transaction is broadcast to the network.
- The network validates it.
- The transaction becomes part of the network's ledger.
Crypto safety basics
- Never share a private key or recovery phrase.
- Double-check wallet addresses before sending funds.
- Use strong passwords and multi-factor authentication when available.
- Be suspicious of promises of guaranteed investment returns.
- Understand that cryptocurrency values can change significantly.
Crypto terms beginners should know
Blockchain: A distributed transaction ledger.
Wallet: Software or hardware used to manage blockchain keys.
Private key: Secret information used to authorize transactions.
Public address: An address others can use to send crypto.
Network fee: A fee that may be paid to process a blockchain transaction.
Exchange: A service where users can buy, sell or trade digital assets.
Where to go next
Once you understand the basics, the next subjects worth learning are Bitcoin, the XRP Ledger, stablecoins, blockchain transaction fees, crypto wallets and how decentralized networks reach agreement.
Educational information only. Nothing on this page is financial, investment, legal or tax advice. Last updated August 27, 2026.