Cryptocurrency is becoming more popular than ever. Studies show that a whopping one-fourth of young millionaires have some sort of cryptocurrency investment. And it is not just the rich that have embraced this new and exciting phenomenon. More and more people are embracing crypto, with millions all around the world admitting to having invested in some form of cryptocurrency or having interests and investments that are directly or indirectly related to cryptocurrency.
It is easy to see why cryptocurrency has caused this boom in investors, young and old. The freedom and anonymity provided by blockchain technology is a massive appeal for people living in the modern age, where surveillance is at an all-time high, and where people have lost their trust in the traditional investment paths. Not only that, but cryptocurrency has the potential to change a person’s life in the blink of an eye. Experts predict that the value of some of the most popular cryptocurrencies will be reaching all-time, record highs in the coming future.
With all that being said, there are still some who are unaware of what cryptocurrency and crypto trading is but are curious. So for those who want to start investing, but don’t know where to start, we would like to offer some helpful information that may help you on your path towards becoming an investor.
What Is Cryptocurrency?
First and foremost, let us start by explaining just what cryptocurrency is, and how it works. Cryptocurrency is a digital asset, which uses cryptography to make secure payments and exchanges. Often, cryptocurrency tends to be decentralized, which means it is not controlled by central authorities, like governments or banks. This offers anonymity to users, as their payments can’t be traced by authorities or companies.
Where Can You Trade Cryptocurrency?
There are several ways to acquire and trade cryptocurrency. There is the process of mining, by which people solve complex math puzzles for crypto rewards. This process is complicated and often difficult. There are also cryptocurrency ATMs, which are a good way to buy cryptocurrency, however, the ATMs charge a high fee, which takes a toll on your profit.
The best way to buy and sell cryptocurrency is to make an account with a bitcoin trading platform. Trading sites provide secure and safe ways to trade cryptocurrency, they offer a user-friendly interface and are easy to use, as all you need is an email, password and username. Not only that, but most of these sites use an Artificial Intelligence program, which studies and predicts the fluctuations and volatility of the market, and accurately predicts future prices based on its findings.
What Are All the Different Cryptocurrencies?
As of 2022, experts have determined that there are over 10.000 cryptocurrencies floating around on the crypto market. With so much to choose from, how can anyone know where to look and which one is the best? In this section of the article, we are going to discuss the different cryptocurrencies and look at the most popular ones, for those who are still unsure whether they want to get started on investing or not.
The first and foremost, is of course, Bitcoin. Bitcoin began in 2009, and was steadily growing since then. The first person to be awarded bitcoin was Hal Finney, a cypherpunk and accomplished developer in his own right, who many have suspected of being bitcoin’s creator. Over the years, bitcoin grew in value and popularity, reaching its apex in 2020, when it exceeded $20.000. Today, a single bitcoin is worth $38.600, and many are expecting it to grow further in the coming future.
A cryptocurrency which has recently gotten quite a bit of prominence, is Ethereum, with their token, the Ether. Ethereum was created by a group of people, headed by programmer Vitalik Buterin. The name came to Buterin when he was browsing an old sci-fi book, which spoke about fictionalized materials. Ether gained traction in the world of crypto by being the first blockchain to embrace the NFT craze, which today has swept the internet. In 2022, a single Ether token is worth upwards of $2000, and might even exceed 3000 in the coming months.
Why is Cryptocurrency Opposed by Governments?
The reason for this is simple. Cryptocurrency is decentralized and operates on blockchains, which means Governments can’t tax cryptocurrency-based purchases, which means Governments can’t profit from said purchases. So they do whatever they can to keep cryptocurrency underground, or even outlawed.
However, it is worth noting that, in 2022, many governments have begun to accept the trend. While China’s ban on all things crypto led to some fluctuations in the market, it quickly recovered, and is still going strong. This has prompted quite a lot of governments to begin tentatively legalizing cryptocurrencies, NFTs, and various other forms of crypto.
Apart from governments, more and more businesses are beginning to embrace the phenomenon, accepting Bitcoin-purchases, and producing their own non-fungible tokens.