What is Cryptocurrency?
Cryptocurrency explained simply: what it is, how it works, the most popular cryptocurrencies and how to start investing in Estonia 2026.
Cryptocurrency is digital money that uses cryptography to secure transactions and control the creation of new units. Unlike traditional money (euro, dollar), cryptocurrency is not owned by any government or bank — it operates on a decentralized network.
Cryptocurrency is based on blockchain technology. A blockchain is a public digital ledger that records all transactions. It is transparent, immutable and secure.
The first cryptocurrency was Bitcoin (BTC), created in 2009. Today there are thousands of different cryptocurrencies, the most popular being Bitcoin, Ethereum, Solana and BNB.
How Does Cryptocurrency Work?
Blockchain
All transactions are recorded on a blockchain — a decentralized database maintained by thousands of computers worldwide. This ensures security and transparency.
Cryptography
Every transaction is cryptographically secured. Your cryptocurrency is safe thanks to a private key — only you can manage your funds.
Decentralization
Cryptocurrency is not owned by any bank or government. Transactions happen directly between users (peer-to-peer) without intermediaries.
Most Popular Cryptocurrencies 2026
Bitcoin (BTC)
The first and largest cryptocurrency, created in 2009. Known as "digital gold" — limited supply of 21 million coins.
Ethereum (ETH)
The second largest cryptocurrency, foundation of smart contracts and DeFi. Created in 2015 by Vitalik Buterin.
Solana (SOL)
Fast and cheap blockchain — up to 65,000 transactions per second. Popular for DeFi and meme cryptocurrencies.
BNB (Binance Coin)
Binance exchange native cryptocurrency. Used for fee discounts and within the BNB Chain ecosystem.
How to Start with Cryptocurrency in Estonia?
Choose a Platform
Best platforms: Bybit, Binance, Bitvavo
Complete KYC
ID verification with passport or ID card
Make a Deposit
SEPA transfer in euros (free)
Buy Cryptocurrency
Bitcoin, Ethereum or another crypto
Start with Crypto Today
Register on Bybit — best platform for beginners. MiCA-licensed, low fees, SEPA EUR.
Open Bybit AccountAffiliate link. Commission does not increase your costs.
