What is cryptocurrency?

whatever amount we invest in crypto where does that particular money goes?

Hey devarishi,
Very vast topic but I will try to give you a brief about crypto with an analogy.

You are a video creator, you release videos on YouTube. The data (your video) gets stored in Google’s database. Only google can access or use your data. You are rewarded by google with money for creating content in youtube. You can exchange this money for something.

Google pays you because you are also responsible for YouTube’s growth, similarly a crypto blockchain rewards miners, stakers etc with reward for maintaining the system. The reward is a cryptocurrency. Eg:- etherium network rewards ether, cardano network rewards ada and so on and so forth. The miners then can sell the coin as means of exchange. Currently coins of the blockchains are traded in the secondary market.

From the above example What if the data is stored in a public database and everyone has a copy of the database, eveyone participating can access, make decisions, bring improvements in the system(YouTube) instead of just one entity(Google). That is what a blockchain is. Block chain is the underlying technology.

This is a very superficial explanation. Would recommend to read more about crypto’s


Good explanation for layman. Thankyou.