1. What is cryptocurrency?
Cryptocurrency is like digital cash. You can use it to pay your share of a bill to a friend, buy that new pair of socks you’ve always wanted, or book flights and hotels for your next vacation. Because cryptocurrency is digital money, you can send it to friends and family around the world.
Just like PayPal or a bank transfer, right?
Well, not really. Cryptocurrency is much more interesting than that!
As you can see, traditional online payment gateways are owned by institutions. They hold your money, and when you want to spend it, you ask them to transfer it on your behalf.
In cryptocurrency, however, there are no institutions. You, your friends, and thousands of other people can act as your own banks by running free software. Your computer is connected to everyone else’s, which means you can communicate directly—without a middleman!

2. What is a blockchain?
Don’t be intimidated by the complex terms people use to describe “blockchain.” A blockchain is just a database. It’s not particularly complex, and you can easily create one in a spreadsheet.
There are a few special things about these databases. First, blockchains are append-only. This means that you can only append information - you can't click on a cell and delete what you've already added, or change it in any way.
Second, each entry in the database (i.e., block) is cryptographically linked to the previous entry. In simple terms, each new entry must contain some kind of digital fingerprint (hash) of the previous one.
That's it! Since each fingerprint points to the previous one, you end up with a chain of blocks. A cooler way to put it is - blockchain.
Blockchain is immutable: if a block is changed, its fingerprint will also be changed. Since the fingerprint is included in the next block, a change to one block will cause the next block to be changed as well. Since the fingerprint of the block... okay, I believe you understand. Any change will have a domino effect, and any change will become obvious. So, no one can change any information privately.
3. Trading
You may have heard that blockchain and cryptocurrency have been applied to many different fields. Without a doubt, one of the biggest use cases at present is speculation.
Trading usually means a way to make short-term profits. Traders may keep buying and selling positions repeatedly.

4. Investing
Investors look for long-term investments based on fundamentals. For example, how much profit a company makes. Although cryptocurrencies are a unique type of asset, it is also possible to analyze long-term investments through the lens of fundamentals.
Passive Income
So far, we have discussed cryptocurrency trading and investing. These methods usually require a lot of time, which not everyone has. If you are one of those busy but productive people, we have other options for you.
As Warren Buffett, one of the most successful investors of all time, said: "If you don't find a way to make money while you sleep, you will work until you die."
The good news is that the cryptocurrency world provides us with many opportunities to earn passive income. You can use the crypto you hold to earn more crypto!
Why doesn't everyone do this? Because, they may not know that there is such a way to make money. But now you know!

Hopefully, after studying this guide, you will have a better understanding of cryptocurrency and how it works.