Cryptocurrencies and blockchain explained

Before we begin, we should ground ourselves in a basic understanding of cryptocurrencies and how they work at a high level.

Cryptocurrencies, such as Bitcoin and Ethereum, are digital or virtual forms of money. They use a technology called blockchain to operate, which is like a digital ledger that records all transactions across a network of computers. This technology is what makes cryptocurrencies decentralized, meaning they aren’t controlled by one single entity (such as a government or bank), but rather, they are spread out across a network of users worldwide.

To use cryptocurrencies, you need something called a wallet. This isn’t like a physical wallet you carry in your pocket; rather, it’s software that can be on your computer or smartphone. Your wallet contains your public and private keys. Think of your public key as your email address that you share with others to receive emails, or in this case, cryptocurrency...