Cryptocurrency — often just called “crypto” — is a form of digital money that exists entirely online. Unlike the pounds in your bank account, there are no physical coins or notes. Instead, crypto is stored and transferred using technology called the blockchain.
What is a Blockchain?
Think of a blockchain as a giant public ledger tracking every transaction ever made. This ledger isn’t stored in one place like a bank’s servers — it’s copied across thousands of computers around the world simultaneously. That makes it almost impossible to tamper with.
When you send crypto to someone, that transaction is verified by the network, added to the blockchain permanently, and completed without any bank involvement.
The Main Cryptocurrencies
Two cryptocurrencies dominate the trading world:
- Bitcoin (BTC) — the original. Often treated like “digital gold” — a store of value with limited supply.
- Ethereum (ETH) — a more flexible blockchain powering decentralised apps and smart contracts, as well as being a widely traded asset.
Why Do Traders Like Crypto?
Crypto markets are open 24 hours a day, 7 days a week — unlike futures markets which have set trading hours. For active traders, this means opportunity is never far away.
Crypto is also known for its volatility — prices can move dramatically in short periods, creating the swings that traders look to profit from.
What is a Crypto Wallet?
A crypto wallet is a tool that stores the private keys that give you access to your cryptocurrency. It doesn’t actually “hold” your crypto the way a physical wallet holds cash — your crypto always lives on the blockchain. What the wallet holds is the key that proves ownership and allows you to send funds.
Think of it like a bank card. The money isn’t in the card — it’s in the banking system. The card just lets you access it. Lose the card (or in crypto’s case, lose your private key), and you lose access to your funds permanently. There is no customer service line to call.
Types of Crypto Wallets
- Exchange Wallets — When you buy crypto on an exchange like Binance or Coinbase, it’s held in their wallet on your behalf. Convenient for trading, but you don’t control the private keys — the exchange does.
- Software Wallets — Apps on your phone or computer (e.g. MetaMask, Trust Wallet). You control your own keys. More secure than leaving funds on an exchange, but still connected to the internet.
- Hardware Wallets — Physical devices (e.g. Ledger, Trezor) that store your private keys completely offline. The gold standard for security. Your keys never touch the internet.
The Golden Rule of Crypto Security
Never store large amounts of cryptocurrency on an exchange. Exchanges have been hacked numerous times throughout crypto’s history, with customers losing everything overnight. An exchange holds your keys — which means technically, they hold your crypto. If the exchange is hacked, goes bankrupt, or freezes withdrawals, your funds could be at risk.
For anything beyond what you’re actively trading, move your crypto to a hardware wallet. Devices like the Ledger Nano or Trezor keep your private keys completely offline — making them virtually impossible to hack remotely. They cost around £50–£100, but that’s cheap insurance for protecting meaningful amounts of crypto.
The phrase in the crypto world sums it up perfectly: “Not your keys, not your coins.”
The Risks
Crypto remains far less regulated than traditional financial markets. Prices can be heavily influenced by news, social media sentiment, and large “whale” holders. Always understand what you’re trading before risking any capital. At Satdish, we trade BTC/USDT and ETH/USDT on 5-minute charts — focusing on technical price action.
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