Cryptocurrency has been considered the money of the future as well as an extremely risky assets. Information about cryptocurrency is spreading at lightning speed because this is a new trending technology that is available to everyone. That’s why it’s important to learn crypto for beginners if you want to start increasing your wealth in a modern and safe way.
Let’s start, with our beginners guide to cryptocurrency. What is a cryptocurrency? Cryptocurrency is a decentralized digital asset that is increasingly used on the Internet. Most cryptocurrencies adhere to decentralized control. All cryptocurrencies work through the blockchain. Blockchain is a digital ledger distribution technology.
Bitcoin was the first such digital asset, first mentioned in 2008. Today, there are over 15,000 cryptocurrencies, the most famous of which are Ethereum, Solana, Cardano, Litecoin, and Tether. The capitalization of the cryptocurrency market at the moment is approximately 1.5 trillion dollars. 40-45% of which falls on the capitalization of Bitcoin, and approximately 20% is allocated to the capitalization of Ethereum. Bitcoin and Ethereum are the undisputed leaders in terms of capitalization, and instead makeup 60-65% of the value of all cryptocurrencies combined. The remaining 40% of capitalization belongs to all other cryptocurrencies.
What are the main differences between cryptocurrencies and ordinary money for an ordinary user? The main feature is that there is no intermediary or counterparty who interferes in the process of transferring cryptocurrencies. Due to the fact that the cryptocurrency is protected by a peer-to-peer network, users can make transfers almost instantly. Also, payments using cryptocurrencies are available 24/7. Many experts are inclined to believe that the level of confidentiality and security of transactions in cryptocurrencies is higher compared to traditional money. The transfers themselves are considered safe because they use a stable and reliable verification system for all transactions. Thanks to this, no third party is needed to confirm transactions.
Can cryptocurrencies be considered money or an investment asset? By definition, money is what can be saved, what can be exchanged, and what can be used to pay for purchases. Cryptocurrencies fit all 3 of these definitions, respectively, cryptocurrencies can be considered money. What has considered an investment asset is something that has a certain value and usually only rises in price over time. Cryptocurrencies also fit the definition of investment assets. Accordingly, we conclude that cryptocurrencies can be safely called money and investment assets. This means that anyone can invest in crypto for beginners in 2022 and experienced moneymakers.
The very understanding of blockchain and cryptocurrency means different things. Blockchain is actually a digital book that was created using special automated algorithms, and no one can change this algorithm from the outside. More and more new entries are added to this digital book, which can be transactions or, for example, smart contracts. If a transaction has already taken place on the blockchain, then it is available to everyone, and no one can cancel it.
There is also such a thing as crypto mining. Cryptominers use special computer hardware, such as a processor or video card, to generate complex mathematical cryptography to confirm each transaction on the blockchain. This process is called Proof of Work. The mining process itself guarantees the validity of every transaction in the blockchain network.
There is also such a thing as crypto exchanges, which for the most part provide the possibility of trading cryptocurrencies and their exchange for paper money. There are 3 main types of exchanges: decentralized, centralized, and hybrid. Decentralized exchanges (DEXs) are in line with the main idea of cryptography, and they allow trading without intermediaries. Centralized exchanges provide exchange between the parties and are responsible for conducting these transactions. The hybrid type of exchange is the least common. They try to provide users with the benefits of both types of exchanges. Liquidity – centralized and anonymity, and security – decentralized.
What is the reason for the popularity of cryptocurrencies? The answer is based on growth and investment potential. The cost of Bitcoin has already reached the mark of 65,000 USD per 1 Bitcoin. And as experts predict, overcoming the threshold of 100,000 USD for 1 Bitcoin will be in the next couple of years. In fact, the cryptocurrency market is still in its infancy and the potential for its growth is multiple.
How can you start investing in cryptocurrencies easily and securely? It is of course a Simple App with its Simple Earns feature. This program will allow you to get a guaranteed annual interest rate on your crypto deposit in bitcoins, altcoins, or stablecoins. It’s like a bank deposit, but you get 10-15% per annum instead of the usual 2% per annum. Overcome inflation with Simple Earns. Even a housewife can handle it. Go to the Simple App and start multiplying your crypto assets.