Cryptocurrency

Cryptocurrencies are digital units of digital currency on a decentralized network that is based on blockchain technology. They are secured by cryptography, making them nearly impossible to counterfeit or double-spend.

Cryptocurrencies can be used to purchase common goods and services, but most people invest in them as they would in stocks or precious metals. Cryptocurrencies are a new and volatile asset class and as such, buying them can be risky. Therefore, you should educate yourself (DYOR) on how each blockchain and protocol operates before investing.

The first cryptocurrency was bitcoin, introduced in 2008 by Satoshi Nakamoto in his whitepaper, Bitcoin: A Peer-to-Peer Electronic Cash System. It was described by Nakamoto as an electronic payment system based on cryptographic proof rather than trust in a third party.

Cryptographic proof comes in the form of transactions that are verified and recorded on the blockchain.

How to choose your cryptocurrency?

In general, bitcoin (BTC) differs from other cryptocurrencies in several ways. It is the first and most valuable cryptocurrency, but there are many other options available.

According to CoinMarketCap.com, a website that provides statistics and information about cryptocurrencies, there are currently more than 21,000 cryptocurrencies available for trading. Every day, more are created, but some also disappear. In November 2022, the combined value of all active cryptocurrencies totalled approximately 850 billion USD, down significantly from the record high of 2.9 trillion USD, which was reached in late 2021.

Some companies have market valuations in the hundreds of billions USD, while others may only have valuations in the hundreds of USD.

If you are considering investing in a cryptocurrency, you may wish to begin with one that is easy and quick to trade. The best way to make such a purchase would be through a centralized exchange (CEX).

Here are 5 established cryptocurrencies

• Bitcoin (BTC) is the first cryptocurrency to be created, and it laid the foundation for all others. Despite numerous attempts by other cryptocurrencies to overtake it, it has maintained its position as the most valuable cryptocurrency.
• Ethereum (ETH) is dubbed the "better BTC." Many interesting projects  take place on its blockchain, including everything to do with the world of DeFi (Decentralized Finance). It is the second largest cryptocurrency, and it continues to hold its position.
• Cardano (ADA) is a cryptocurrency that competes with the Ethereum blockchain and is led by one of Ethereum's co-founders. So far, it has not demonstrated anything remarkable. However, it is supported and trusted by a large community.
• BNB is a coin that is issued by the Binance exchange and was released in 2017. It is used for fees on the BNB Smart Chain (BSC) network and for exchanges within the BNB Smart Chain (BSC) network. Due to the popularity of the centralized Binance exchange, the BNB coin has grown significantly.
• Stablecoins, such as USDT and USDC, are cryptocurrencies whose values are intended to remain stable at 1 USD.

PROs

• A vision for the future
• Decentralization
• The possibility of earning passive income

CONs

• Small market
• Low adoption
• A lot of scams
• Volatile market
• Referred to as a speculative bubble