Investing · Video Lesson

What is Cryptocurrency?

Cryptocurrency is digital money secured by cryptography and recorded on a blockchain. This lesson explains what crypto is, how blockchain keeps it secure, well-known examples like Bitcoin and Ethereum, how people acquire it, and the benefits and serious risks — volatility, lack of regulation, and hacking.

Grades 7–12 + adult Video Lesson 45–60 minutes Free Lesson

What is cryptocurrency lesson illustration

For Teachers

Lesson at a glance

Topic: Investing
Grade Level: Grades 7–12 + adult
Resource Type: Video Lesson + Worksheet
Estimated Time: 45–60 minutes
Format: Class discussion + research activity
Materials: Video, worksheet, whiteboard, devices for research

What Students Learn

Learning objectives

Define cryptocurrency and how it differs from traditional currency
Explain blockchain as a decentralized digital ledger and the role of cryptography
Identify well-known cryptocurrencies such as Bitcoin and Ethereum
Describe how people acquire crypto (buying, payment, mining)
Weigh the benefits against risks like volatility, no regulation, and hacking

Video Lesson

Watch: What is Cryptocurrency?

Materials

What you’ll need

Internet access for the video
Printed copies of the worksheet quiz (one per student)
Devices for the cryptocurrency research activity
Whiteboard or projector

Key Terms

Vocabulary

Cryptocurrency: Digital money secured by cryptography and not issued by a government.
Blockchain: A decentralized digital ledger that records transactions across many computers.
Cryptography: Math-based security that makes crypto hard to counterfeit.
Bitcoin: The first and best-known cryptocurrency.
Mining: Using computing power to verify transactions and earn new coins.
Volatility: Large, rapid swings in price.
Decentralized: Not controlled by a single authority like a government or bank.

For Teachers

Lesson plan

Estimated time: one 45–60 minute class period.

Lesson sequence

Introduction (10 min). Ask what students have heard about Bitcoin or crypto. Capture both excitement and skepticism.
Watch the video (15 min). Play the lesson video. Ask students to note how blockchain works and the risks.
Discussion (15 min). Cover how crypto differs from traditional money, blockchain and cryptography, examples beyond Bitcoin, how it’s acquired, and the benefits vs. risks.
Activity (10 min). Groups research one cryptocurrency (e.g., Ethereum, Litecoin) and present its features and risks.
Quiz (8 min). Students complete the printable quiz; the answer key is included for teacher use.

Assessment

Assess participation, the research activity, and the printable quiz.

This lesson is for educational purposes only and is not investment advice.

Discussion

Discussion questions

What is cryptocurrency, and how is it different from dollars or euros?
What is blockchain, and why is it important to how crypto works?
How does cryptography keep cryptocurrency secure?
What are some ways people acquire cryptocurrency?
What are the main risks someone should weigh before buying crypto?

Printable Quiz