What are cryptocurrencies
Cryptocurrency is digital money that exists only on the Internet and does not have a physical shell. The unit of measurement of digital currencies is called a "coin" or "token". The main goal of the crypto industry is to find an alternative to traditional money for purchasing goods and services.
Cryptocurrencies are created on blockchain technology to ensure security and verification of transactions between users. Blockchain is essentially a chain of blocks containing transaction information. This can be compared to a registry that records the amount of cryptocurrency owned by each person. The entries in this ledger are protected by cryptography, preventing unauthorized changes or loss of tokens within the chain.
When you transfer cryptocurrency to another person, a unique entry is made in the ledger, which is then verified by a network of computers to confirm the presence of funds. If the information is correct, the entry is added to the blockchain. To facilitate this process, a network of computers solves complex mathematical problems known as "mining". Miners, who are members of the network, are rewarded with new cryptocurrency for helping to solve these problems using specialized devices and computing power.
There are several ways to make money using digital currencies.
One of them is staking (from the English stake - "share"). Using staking on crypto exchanges*, you "freeze" a certain amount of coins in your wallet to support the operation of the network. In return, you are rewarded with additional coins. Staking helps ensure the security of the network and maintain its functionality.
Next, we want to provide a list of the most popular crypto exchanges at the moment: Binance, Coinbase, Kraken, Bitfinex, Gemini, Huobi, KuCoin, BitMax. Choosing an electronic platform for investing in cryptocurrencies is individual, but we recommend that you carefully read the reviews on the Internet before making a final choice. Diversification of funds across several platforms in this case will not be superfluous either.
In financial markets, digital money can also be an object of trading speculation in order to earn money on changes in the value of a particular coin.
In conclusion, we note the high volatility (variability) of the crypto market, which allows you to make good money on changes in coin rates, but this is also associated with high risks in the case of too aggressive trading and the absence of a trading plan in your operations. Learn how to correctly determine the price rate vector and calculate the volume of investment transactions before starting real operations.
The list of cryptocurrencies now numbers in the hundreds. We will provide only a small list of them that are now “on everyone’s lips”:
Bitcoin (BTC): Bitcoin, launched in 2009, is the first and most famous cryptocurrency. It operates in a decentralized network using blockchain technology. Bitcoin’s primary use case is as a digital store of value and medium of exchange.
Ethereum (ETH): Introduced in 2015 by Russian-born Vitalik Buterin, Ethereum is a decentralized platform that enables the creation of smart contracts and decentralized applications (DApps). Ethereum is known for its programmability and hosts a wide range of tokens and projects on its blockchain.
Binance Coin (BNB): Binance Coin is the native cryptocurrency of the Binance exchange. It is used to pay trading fees on the platform and offers various use cases within the Binance ecosystem, including participating in token sales and decentralized finance (DeFi) applications.
Solana (SOL): is a high-performance blockchain platform known for its scalability and low transaction fees. It supports decentralized applications and DeFi protocols and aims to speed up transaction processing.
Cardano (ADA): is a blockchain platform that aims to provide a more secure and scalable infrastructure for the development of DApps and smart contracts. It emphasizes academic research, peer-reviewed development, and sustainability.
Ripple (XRP): is a digital payment protocol that enables fast and low-cost cross-border transactions. It is designed to be used by banks and financial institutions to settle payments efficiently.
Polkadot (DOT): is a multi-chain interoperable network that allows different blockchains to transfer messages and value in a trustless manner. Its goal is to create a decentralized and interconnected network.
Dogecoin (DOGE): Originally created as a meme coin, Dogecoin has gained popularity due to its active community and social media presence, as well as Elon Musk choosing the token for some of his projects.
In conclusion, we note the high volatility (variability) of the crypto market, which allows you to make good money on changes in coin rates, but this is also associated with high risks in the case of too aggressive trading and the absence of a trading plan in your operations. Learn how to correctly determine the price rate vector and calculate the volume of investment transactions before starting real operations.
