Everyone’s talking about crypto. But a 2021 Pew Research poll found that only 16% of Americans invest, trade, or use any. Partly because many people don’t understand how cryptocurrency works.
It’s digital money built on cryptography (hint: sending secure, encrypted messages). And transactions are recorded on a digital ledger. Aka a database called the blockchain. Which makes it almost impossible to counterfeit or double-spend. 
Cryptocurrencies are created through a mining process. Let’s look at Bitcoin, for example. In order for a Bitcoin to be created, it needs to be mined. Hint: Mining happens as the result of specialized computer networks solving a math puzzle. Once the puzzle’s solved, the winner gets a newly minted coin — in this case, a Bitcoin. But mining equipment can cost thousands of dollars. Those who want to get in on crypto without mining can buy cryptocurrencies through a crypto exchange (​​think: Coinbase, Gemini, and Binance).
PS: Most crypto mining is not environmentally friendly. Because it takes a lot of electricity to power those competing computer networks.
Our cash has value because it’s issued by a centralized authority and used in our economy. Cryptocurrency is decentralized (aka not backed by any one authority) and isn’t widely used in the same way. Instead, its value comes from scarcity and high demand. Kinda like gold and other precious metals. And it gains value when demand rises.
First, you’ll need a digital wallet to store your crypto. Then you’re ready to make your purchases. Hint: Major companies like Microsoft and Overstock.com accept crypto payments. So do some service providers, like AT&T, Dish Network, and Twitch.
The Fed is working on ways to regulate it. Because fraud. Just last year, scammers stole over $14 billion worth of crypto. But you can help keep your digital money secure by picking and managing your wallet wisely.   
If you don’t understand cryptocurrency, you aren’t alone. But it may be the future of money, so it’s worth learning about now. And you don’t have to be a tech genius to get how to buy, spend, and store it.


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