Creatine is not necessary, and neither is whey strictly speaking. Both help though!
In basic principles, creatine allows the body to store energy in the muscles. Greater quantities of creatine mean greater quantities of energy stored. It also means you have to drink a lot more fluids as the amount of fluid the body holds in muscles increases slightly too.
It's probably good practice to go on Creatine with cycles so that the body doesn't become dependant on the creatine intake, i.e. to keep up its natural production of creatine alongside the supplement.
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