If you are new to crypto, terms like Blockchain and Ethereum may feel overwhelming. Even the most experienced traders sometimes have difficulty describing cryptocurrency and how to invest in it. That’s because it’s not a simple matter. Understanding the fundamentals can help you get started and earn a passive income through crypto. It can also make your conversations explaining your investments a little easier. We would like to summarize the basics of crypto fundamentals and the types of investments to help you out.
What is cryptocurrency?
Cryptocurrency investments are no longer considered speculative and suspicious. Crypto is today starting to be a popular form of investment. It is a digital currency that is used for payments around the world. You don’t need a bank account to use the currency which is a key feature making it so popular. It is decentralized, making it more certain that third parties can’t control how you manage your funds.
Here are some common terms surrounding cryptocurrency that you have probably heard:
● Decentralized: Decentralized means a transaction that is made without the need for a thirds party, such as a bank
● Bitcoin: The first of its kind and one of the most popular digital cryptocurrencies in the world
● Blockchain: Blockchain is a technology that stores verified information regarding crypto. It is essential in preventing fraud
● Crypto Market: The market value in crypto refers to the worth of a crypto coin.
Why is cryptocurrency so popular?
Growth is what attracts people to cryptocurrency. Crypto attracts investors around the world due to the rising market value of shares or currency. Investments can increase drastically over time and can even be worth millions with time, depending on how much you put in and how good the market is for that currency. Bitcoin, for example, is a currency that has grown considerably over the years.
Types of cryptocurrency exchanges
● Centralized Crypto Exchanges
You may have heard the term centralized cryptocurrency exchanges. They are platforms that help users trade their digital assets. The system works as a secure third party for buyers and sellers. IXFI is one such platform and the perfect place to start your trading.
● Decentralized Crypto Exchanges
Decentralized cryptocurrency exchanges are the most widely used form of exchange. A decentralized cryptocurrency involves peer-to-peer transactions (as opposed to working with a third party).
● Hybrid Crypto Exchanges
Hybrid platforms are a mix of features of both platforms. They use software that helps users and third parties work through secure transactions.
Features to look for when choosing Crypto platforms
● Safety: look at the safety features of the platform. Is your information kept secure?
● No hidden costs: look for hidden costs such as specific trading fees and the costs involved in the management of your account. Costs should be stated to you upfront, not after the fact.
● Easy of use: it is good to look for a platform with advanced functions but the platform’s basic functions should be well implemented. You should be able to easily buy currency and sell when needed.
Types of cryptocurrency investments
Like any investment, there are many different types available. Each is unique and has its value. Here are some of the most popular crypto coins:
● Ether (ETH)
Ether (ETH) is the second-largest crypto following Bitcoin. It is a blockchain that allows other tokens to be built on it.
● Bitcoin (BTC)
Bitcoin is the first and most popular coin. It is valued high despite fluctuations. Created as a digital payment channel, Bitcoin is still sought after by investors for short-term and long-term profit.
● Cardano (ADA)
Cardano is a stable and secure blockchain. It’s popular due to its security and decentralization.
● Polkadot (DOT)
Polkadot allows blockchains to operate together. It allows for seamless transactions between one blockchain and another. It is popular as it allows users to be more in control.
● USD Coin (USDC)
USD Coin is considered one of the most stable cryptos as it is linked to the U.S. Dollar.
● Dogecoin (DOGE)
Dogecoin has had its value boosted thanks to Elon Musk. Although its value rose considerably high, its value fell somewhat at the end of 2021.
● Chainlink (LINK)
Chainlink (LINK) uses real-world data. It is popular due to its security and reliability.
● Tether (USDT)
USDT is a stablecoin and the largest of its kind in the market.
There are thousands more cryptocurrencies, and you can find all of the above and others worth investing in on Your Friendly Crypto Exchange. If you are ready to start your journey in crypto trading, or even if you need to find out more about cryptocurrency, register on IXFI to make the first steps.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
