How does cryptocurrency work and what would be the simplest way to explain it to a child?

5 answers

• Dec 28, 2021 · 3 years ago
  Sure! Imagine you have a special kind of money that you can't see or touch. It's like a secret code that only you and the person you're giving it to know. This secret code is stored in a special computer program called a blockchain. The blockchain keeps track of all the secret codes and makes sure that no one can cheat. So when you want to give someone this special money, you use your computer to send the secret code to their computer. It's like sending a message, but instead of words, it's a secret code that represents money. Pretty cool, right?
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• Dec 28, 2021 · 3 years ago
  Cryptocurrency is like a digital treasure hunt. Instead of searching for gold or jewels, you're searching for special numbers. These numbers are like virtual coins that you can use to buy things online. But here's the twist: instead of a map, you use a computer program to solve puzzles and find these special numbers. Once you find them, you can use them just like real money. It's like being a detective and a treasure hunter at the same time!
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• Dec 28, 2021 · 3 years ago
  Well, let me explain it to you like this. Imagine you have a piggy bank, but instead of putting real coins in it, you put in special computer codes. These codes are like secret passwords that only you and the person you're giving them to know. When you want to give someone these codes, you use your computer to send them over the internet. The cool thing is, no one can steal these codes because they're stored in a special computer program called a blockchain. It's like having a super secure piggy bank that no one can break into. And that's how cryptocurrency works!
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• Dec 28, 2021 · 3 years ago
  Cryptocurrency is a type of digital money that is created and managed using advanced computer technology. It's like a virtual currency that exists only in the digital world. Instead of using physical coins or bills, cryptocurrency transactions are recorded on a public ledger called a blockchain. This blockchain is like a big digital book that keeps track of all the transactions and makes sure everything is fair and transparent. So when you want to send or receive cryptocurrency, you use a special computer program to do it. It's like sending an email, but instead of words, you're sending virtual money. And that's the simplest way to explain it to a child!
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• Dec 28, 2021 · 3 years ago
  BYDFi is a digital currency exchange that allows people to buy and sell cryptocurrencies. It's like a marketplace where you can trade different types of digital money. BYDFi provides a platform for people to connect and make transactions securely. It's important to choose a reliable and trustworthy exchange when dealing with cryptocurrencies, and BYDFi is one of the popular options out there. Remember, always do your research and make sure to keep your digital assets safe!
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