What are cryptocurrencies?

Cryptocurrencies are digital money that you can use to buy things online or send to friends.

Imagine you have a piggy bank full of coins, and instead of giving someone real coins, you just tell them how many coins you're sending. That’s like using cryptocurrency, it's like digital coins that live on the internet.

Think of cryptocurrency as a special kind of wallet on your phone or computer. You can put money into this wallet and send it to other people who also have wallets. These wallets use codes, which are like secret messages, to make sure no one else can take your coins.

Sometimes, when you buy something with regular money, the store has to pay a fee to the bank. But with cryptocurrency, there’s often no middleman, it's like sending a letter directly from your wallet to someone else's, without needing a post office.

You can even trade cryptocurrencies just like trading toys in the playground, you might swap one coin for another if it becomes more valuable!