A blockchain is a shared digital ledger that records transactions across a network of computers. Instead of relying on one central database, transactions are generally verified and recorded by the network. Different blockchains use different technical designs, rules, and methods of reaching agreement.

Cryptocurrency is a type of digital asset that uses cryptographic technology and a blockchain or similar distributed network. Bitcoin, Ethereum, and many other digital assets fall under the broad category of cryptocurrency, although they can have very different purposes and technical characteristics.

Bitcoin was designed primarily as a decentralized digital form of money and a store of value. Ethereum is a programmable blockchain that supports smart contracts and decentralized applications in addition to its native cryptocurrency, Ether (ETH). Their networks, technical designs, and common use cases are therefore different.

These are generally called ticker symbols or abbreviations. BTC refers to Bitcoin, ETH to Ether, USDT to Tether's USD-pegged stablecoin, and USDC to USD Coin. Other assets have their own symbols. Because similarly named tokens can exist on different networks, it is important to confirm both the asset and the network before sending funds.

Stablecoins are digital assets designed to maintain a relatively stable value compared with another asset, commonly a fiat currency such as the U.S. dollar. Examples include USDT and USDC. Their mechanisms, reserves, risks, and terms can differ, so a stablecoin should not automatically be treated as identical to holding cash.

Crypto transactions can involve network fees paid to the blockchain network for processing a transaction. Depending on the service being used, there may also be exchange fees, spreads, withdrawal fees, custody fees, or other service charges. Costs can vary by asset, network congestion, transaction size, platform, and timing.

A cryptocurrency wallet is software or hardware used to manage access to digital assets. Wallets generally interact with blockchains using cryptographic keys. Some wallets are self-custody, meaning the user controls the private keys, while custodial services manage keys on behalf of their customers.

The terms are sometimes used interchangeably, but they can describe different things. A coin typically refers to the native asset of its own blockchain, such as BTC on Bitcoin or ETH on Ethereum. A token generally operates on an existing blockchain. There are exceptions and different conventions across the industry.

There is no single permanent number. Thousands of cryptocurrencies and tokens have been created, and new assets can appear while others become inactive or are removed from exchanges and tracking services. The number also depends on whether you count every individual token or only established cryptocurrencies with active markets.

No. Cryptocurrency and traditional securities are different types of assets and can have very different legal, technical, and market characteristics. Cryptocurrency markets can also experience significant price volatility and different levels of liquidity. The risks and regulatory treatment depend on the particular asset and jurisdiction.

Cryptocurrency transactions are generally designed to be irreversible. Sending an asset to an incorrect address or incompatible network can therefore result in permanent loss of funds. In some circumstances recovery may be possible, but it depends on the asset, network, receiving service, and circumstances. Always verify the address, asset, and network before confirming a transaction.

Every cryptocurrency situation is different. If you have a question about a particular asset, wallet, transaction, platform, or service, we'd be happy to learn more about what you're trying to accomplish.