Lesson 1 of 6 8 min read
What a cryptocurrency actually is
Blockchains, tokens and why anyone puts value on them.
A shared ledger
A blockchain is a public record of who owns what, kept in sync by thousands of computers. No single company controls it, and every transaction is visible. A cryptocurrency is simply a unit tracked on that ledger.
Coins vs tokens
Coins (BTC, ETH, SOL) are native to their own blockchain and usually pay transaction fees. Tokens (LINK, ARB, stablecoins) are issued on top of another chain. Both can be traded, but their risks and uses differ.
Where value comes from
Price is set by supply and demand. Demand can come from real use (payments, fees, collateral), from scarcity, or from speculation. Most coins are driven heavily by speculation, which is why they are so volatile.
Key takeaways
- A blockchain is a public, shared ownership record.
- Coins run their own chain; tokens live on someone else's.
- Speculation is a big part of crypto prices — expect volatility.
Exercise
Pick three coins you've heard of. Write one sentence each on what they are used for. If you can't, that's a signal to research before you trade them.
Educational content only, not financial advice. Crypto is volatile and you can lose money.