What is Crypto? Cryptocurrency explained originally appeared on TheStreet.
Your paycheck already buys less than it did three years ago because the recent years inflation spike quietly eroded the real value of savings. Yet 1.4 billion adults still have no bank account at all, locking them out of the traditional system. Those who do send money abroad lose an average 6.62% in fees every time.
Central banks feel the pressure, too, 86% are now exploring their own digital currencies. Wall Street just moved in as well. After the SEC green-lit spot-Bitcoin ETFs on Jan 10. 2024, investors have funnelled more than $49 billion into them.
In short, crypto is no longer a niche experiment, it's leading the conversation on inflation hedging, financial inclusion, and institutional flows. But what is crypto exactly? Let’s dive in.
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What is cryptocurrency?
Think of cryptocurrency as internet-native money. Instead of paper bills or a bank database, every coin is simply an entry on a public record called a blockchain.
Each time coins move, the transaction is bundled into a “block” and chained, in order, to everything that came before, making the history permanent and tamper-resistant.
Because this ledger is copied to thousands of computers worldwide, no single company, government or hacker can change it unilaterally.
Why do people care?
But why should you care? There are three basic reasons:
First, it’s open all day, every day: The network never closes, so a transfer at two a.m. settles in minutes, not the two-day window common for bank wires.
Second, lower fees: Moving value directly between users often costs less than traditional wire or card rails.
Third, it’s borderless: A user in Brazil can send crypto to another user in Germany without currency conversion or correspondent banks.
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How to get exposure?
How to get exposure you ask? You have three starting points:
First is spot-Bitcoin or Ethereum ETFs: Tickers like IBIT or ETHA sit in ordinary brokerage accounts and trade at stock-market hours.
Second is crypto exchanges: These are online platforms where you can buy cryptocurrencies like Bitcoin. Just make sure to choose firms that comply with U.S. or EU regulations.
Third is hot and cold wallets: This is where the true ownership and self custody lies. Keep in mind that you are 100% responsible for your cryptocurrencies at this stage. It's the most advanced form of ownership and you must keep your private keys, which is the secret code that proves ownership, very safe.
繼續閱讀The one rule you must remember: Lose your private key and your crypto is gone forever. There is no “Forgot Password” link on a blockchain. Write it down, store it somewhere fire and water safe, and never share it with anyone.
Risks to weigh-in
With great power comes great responsibility. Here are some risks to keep in mind.
Volatility: Prices can drop 50% in a bad quarter.
Counterparty failure: Unregulated exchanges have collapsed, freezing customer funds.
Regulatory shifts: Rules differ country by country and are still evolving. The EU’s MiCA framework will impose uniform disclosure and custody standards, and in the U.S., the SEC is ramping up enforcement and rolling out new guidance on digital asset registration and custody.
Looking ahead
The future is getting brighter for crypto. When the SEC opened the ETF door, crypto stepped onto the same playing field as stocks and bonds. Parallel moves in Europe signal that digital assets are being folded into existing investor protection laws rather than ignored.
Cryptocurrency is simply money rewritten for the internet age — scarce like gold, open like email, fast like texting. Whether you dip in through an ETF or a regulated exchange, understanding the basics now is as essential as grasping what “stocks” meant before you bought your first share.
What is Crypto? Cryptocurrency explained first appeared on TheStreet on Jul 9, 2025
This story was originally reported by TheStreet on Jul 9, 2025, where it first appeared.
