What is cryptocurrency
A cryptocurrency is digital money recorded on a blockchain instead of in a bank's database. Nobody can print it at will or freeze it without the owner's keys, and every transfer is public. There are thousands of coins, but most fall into a few types. Here is what crypto is, how the main types differ, how people buy it and what risks come with it.
Crypto in simple words
Instead of a bank keeping a record of who owns what, thousands of computers keep the same record, the blockchain. To spend your coins you sign a transaction with a private key, a long secret number stored in your wallet. The network checks the signature and adds the transfer to the next block. How blocks and hashes work: what is blockchain.
Main types of coins
| Type | What it is | Examples |
|---|---|---|
| Original cryptocurrency | Digital money with a fixed supply, secured by mining | Bitcoin |
| Platform coins | Pay for transactions and smart contracts on their network | Ether, TON's coin GRAM |
| Stablecoins | Tokens pegged to a currency, usually the US dollar | USD₮ (Tether), USDC |
| Project tokens | Tokens of apps, games and exchanges | Thousands, most short-lived |
| Meme coins | Coins driven by hype and community | Dogecoin and many copies |
Where the value comes from
A coin is worth what people are willing to pay for it. Bitcoin's value comes from limited supply and wide acceptance. Platform coins are needed to use their networks. Stablecoins hold value because the issuer promises to keep reserves. Most project and meme tokens have no reason to keep their price once interest fades, which is why many lose nearly all of it.
How people get crypto
- Exchanges: buy with a bank card or transfer after identity verification.
- P2P markets: buy from another person, with the platform holding the coins until payment arrives.
- Wallets with built-in purchase: convenient, often more expensive.
- Earning it: payment for work, rewards from apps and games, mining.
For example, TotalHash, a free mining game in Telegram, pays small amounts of USD₮ and GRAM for tasks and ads, withdrawable to your own TON wallet.
Where to keep it
On an exchange the company holds your keys; in a self-custody wallet you do. For anything beyond small amounts, learn the difference first: crypto wallets explained. If you use TON, see the TON wallet guide.
Risks
- Volatility: prices can drop by half in weeks.
- No undo: a transfer to a wrong address or a scammer cannot be reversed.
- Lost keys: lose the seed phrase and the coins are gone.
- Platform risk: exchanges can fail or freeze withdrawals.
- Regulation and taxes: rules differ by country and change.
Use the crypto profit calculator to see how fees and price moves change the result. Nothing here is financial advice.
Common crypto scams
- "Send 1 coin, get 2 back" giveaways using celebrity names.
- Guaranteed daily returns from trading bots or "staking plans".
- Fake support asking for your seed phrase.
- Romance and job scams that end with a request to "invest".
- Fake airdrops that ask you to connect a wallet and sign a transaction. More in crypto airdrops.
Get your first small crypto rewards in a free Telegram game.
Open TotalHashQuick answers
What is crypto in simple terms?
Digital money recorded on a blockchain. You control it with a private key, and every transfer is checked by the network instead of a bank.
What are the main types of cryptocurrency?
Bitcoin-like currencies, platform coins such as Ether and GRAM, stablecoins such as USD₮, project tokens and meme coins.
How can I get cryptocurrency?
Buy it on an exchange or P2P market, or earn it as payment, from mining or from reward apps and games.
Is cryptocurrency safe?
The technology is secure, but prices are volatile, transfers cannot be reversed and scams are common. Never share your seed phrase.