If you want to run VS Code from the terminal by simply typing 'code', VS Code has a command, Shell Command: Install 'code' command in PATH, to add code to your $PATH variable list.
After installation, launch VS Code. Now open the Command Palette (F1 for Windows or ⇧+⌘+P on Mac) and type shell command to find the Shell Command: Install 'code' command in PATH command.
After executing the command, restart the terminal for the new $PATH value to take effect. You'll be able to simply type 'code .' in any folder to start editing files in that folder.