Simple Crypto & Trading Series | Lesson 1.1: What is Crypto? 🔑

You are looking at coins like Bitcoin (BTC) or Ethereum (ETH) on the Binance app and wondering: "What exactly is Crypto?" 🤔 Don't worry, I will explain it very simply with relatable examples for you to understand!

Crypto is a type of "money" or asset that exists only on the internet that you trade on exchanges like Binance. When you open the Binance app and look at the list of types like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE)... under the Markets or Wallets section, that is Crypto.

Simple example: Think of Crypto as a type of digital asset, similar to gold or a form of digital stock of an "internet project", whose value fluctuates based on many factors, just like gold or stocks in real life.

The biggest difference compared to money in the bank: Crypto does not have a single "bank" or "owner" managing it.

Another simple example: The money in your bank account is managed by that bank. Crypto does not belong to any specific bank or government. It operates based on a network of computers from many participants around the world.

Another simple example: The right to use Crypto lies in a digital "key" (called a private key) that only you know. No one needs to "press the confirm button", you can still use your money. It's like you holding the key to your safe, instead of relying on the bank to keep it safe!

Simply put, Crypto is digital money that does not belong to any specific individual, and you are the one who directly controls it with your own "key".