What are Cryptocurrencies?
Cryptocurrencies are currencies that can operate on the Blockchain using cryptography. Cryptography is used to ensure a secure interaction for anyone involved without the need of an authority. This way you can buy, sell and trade with currencies without the worry if you are safe. Now, being safe in cryptocurrencies is a whole new level. So if you’d like to learn more about safety first, please check the security section.
Why cryptocurrencies?
Decentralization
A new decentralization model for money. Not a single authority is able to control the network (with some exceptions – we’ll dive into those later).
Cost-effective
Have you ever transferred 100$ overseas? Yes? Have you noted how much fees you paid? Some cryptocurrencies allow for transactions below 1 CENT.
Transaction speed
Most regular fiat transactions are settled over the course of days. A wire transfer may take up to a day or more. Crypto transfers can be done in seconds.
Digital assets leveraging cryptographic techniques
Cryptocurrencies are forming a financial revolution, representing a shift in the traditional landscape of currency and transactions. These digital assets leverage cryptographic techniques to secure financial transactions, ensuring transparency and decentralization. Which in turn makes the cryptocurrency having a monetary value.
As a medium of exchange/governance/other utility, cryptocurrencies (coins and tokens) operate on decentralized blockchain networks, allowing for peer-to-peer transactions or other activities without the need for intermediaries like banks. Bitcoin, the pioneering cryptocurrency, introduced the concept of decentralized digital currency, inspiring the creation of alternative blockchains/coins/tokens/protocols, each with its unique features and use cases.
Crypto has the potential to revolutionize finance, to streamline cross-border transactions, and to empower individuals with financial possibilities. As the cryptocurrency landscape continues to evolve, it remains a dynamic and influential force shaping the future of global finance.
Temper-resistant and decentralized
The underlying technology, blockchain, serves as the base of cryptocurrencies, providing a tamper-resistant distributed ledger that records all the transactions across a network of computers. This decentralized nature eliminates the need for a central authority, creating trust among participants in the absence of traditional banking systems.
The ups and downs of Cryptocurrency
The value of cryptocurrencies are known to be volatile. We’ve seen crashes in crypto in which in 15 minutes over 400 Billion of the total market cap evaporated. *poof* 400 BILLION gone. There are also bull runs in which you see your tokens or coins multiplying by 100x value. Being part of such bull runs is a phenomenal experience. On messaging platforms such as Discord, you are with 300.000, all with the same attitude. That is wild! For people who have witnessed bull runs, hype videos and gif images like these aren’t rare:
But be warned: Know that there is extreme volatility and really only play with money you can afford to lose.
Trading Cryptocurrencies:
Before you start trading cryptocurrency, keep the following things in mind:
- Set goals: How much would you like to profit on the crypto? Write it down and track your portfolio performance.
- Take profits: Once your goals are achieved, take profits. Even if you think it still might go higher. You don’t have to take 100% out, but usually it is smart to take out your initial investment + some profit.
- Stay sane: You could look 24/7 on crypto charts, draw the Fibonacci deluxe ultra, but nobody knows what a crypto price will do. Next to that; your mental health will suffer. Yes you can do DYOR, but still there are always external factors you can’t possibly know.
- Don’t FOMO: It is easy to get drawn into the hypes around certain coins, but don’t get nervous about having missed an opportunity, either be there early or just don’t try.
- Stay safe: For some best practices, visit our Security section.
- Explore DCA: Dollar Cost Averaging. It is an investment strategy to let’s say monthly put $ X into cryptocurrency regardless if it went up or down. Over a certain time period you have averaged out your purchase price.
- Nobody knows S&#* about F(#*: This is a wisdom in this world. It helps you listening to others less about investment advice. Economics are so extremely complex, that there is no one able to offer 100% accurate investment advice.
Below we’ll link to how to do DYOR, link a few cryptocurrencies, explain how to obtain crypto, and close with a Quiz!
Safe And Secure
Nobody is able to access your funds with the current technology if you properly back-up your seed phrase and don’t connect your wallet to anything. Learn good practices in our Security section to stay safe out there.
