What you’re describing is called “Top rope”, which is how many people rock climb for the first time. As you said, you need the rope to be anchored on top of what you are climbing. It’s a great way to learn because you can never fall very far, so long as your partner is good at belaying (holding the rope).
When climbing something like a mountain, you need to “lead climb”. This is when you start with your partner and the rope on the ground. One person climbs first (the leader) and they place anchors in the rock as they go. If they fall, they fall a lot further since the anchor is below them, but if done correctly this can be very safe. After they reach the end of their rope, the “leader” makes an anchor and belays their partner up to where they are. Then a “leader” climbs again, and they inch-worm their way up the rock or mountain.
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