An outdoor fireplace resembles and works in the same way as its indoor counterpart.
They are typically built in masonry and lined with firebricks on the inside. The chimney directs the smoke up and away from the hearth and the living area.
Fireplaces create dramatic focal points. The smaller, portable rather rudimentary version of a fireplace are called chimineas.
They are typically fire urns made of clay or steel. They provide an elevated, portable outdoor hearth with an opening that lets out heat.
The upper, narrower part acts as a chimney.
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If you are looking for a quick, low budget solution, then chimineas would be something you might want to consider.