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One of the buzziest terms in contemporary finance,cryptocurrencycan feel incredibly difficult to understand.
Is it a digital currency?
And why have so many people made memes about it?
Which, for many laypeople, is exactly what they need to get a handle on crypto.
And by many laypeople, I mean me your humble personal finance writer.
Okay, that makes sense.
Tell Me More
Okay, so, money stays in the bank.
Stocks live in yourbrokerage account.
Where does crypto reside?
The blockchain keeps track of every transaction (as in who sent what to whom).
Crypto is decentralized, which means theres no boss, bank or government in charge.
It runs on thousands of computers all over the world.
That makes a lot of sense.
Im starting to get it now.
But what can I even get with it?
Turns out, a lot.
Where Does It Get Its Value?
In fact, traditional money works the same way.
Its kind of like rare trading cards.
If only a few exist and everyone wants one, it becomes more valuable.
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