How Does Cryptocurrency Work? 🧐
Now that you know what crypto is, let’s dive into how it works!
🔹 1. Blockchain Technology
Think of a blockchain as a digital ledger that records all transactions. It’s secure, transparent, and tamper-proof because no single entity controls it.
🔹 2. Crypto Wallets
To store and use crypto, you need a crypto wallet. There are two main types:
💼 Hot Wallets – Online & easy to access (MetaMask, Trust Wallet).
🔐 Cold Wallets – Offline & more secure (Ledger, Trezor).
🔹 3. Mining & Staking
💻 Mining – Uses computer power to verify transactions (like Bitcoin).
📈 Staking – Holding coins in a wallet to support the network & earn rewards (like Ethereum).
💡 Why Does This Matter?
Understanding these basics helps you securely invest, trade, and benefit from crypto! 🚀
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