Welcome to the third lesson! Today it’s time to figure out the prospects for the cryptocurrency market and highlight the main benefits of using them.
Despite the “youth” of this financial market, in comparison with all the usual “classic” ones, cryptocurrencies have gained the most rapid popularity. And if not everyone knows the mechanism and concept of work yet, then it’s almost impossible to find a person who has never heard of cryptocurrencies. As to the figures, the cryptocurrency market is nearly 10 years old. However, it has already reached a turnover of more than $1trillion. An enormous number of investors have entrusted their funds to the “new instrument,” and it is not even in vain. Cryptocurrencies have become a whole breakthrough. Perhaps, it’s one of the loudest in the century.
An essential advantage of digital currencies is that they cannot be counterfeited (all coins are a complex and unique cipher). Besides, cryptocurrency wallets and storing services have an increased degree of protection against hacking. Transactions with the funds of your cryptocurrency portfolio are entirely anonymous. Each operation is encrypted with a complex code; it is generated for each payment separately. Therefore, attempts to decode it are entirely useless and will not help in obtaining personal information.
You can also state boldly that cryptocurrencies and blockchain are a full-fledged way to earn money (and experienced traders make a lot of money!).
The following types can be highlighted:
- investments in cryptocurrencies;
- cryptocurrency trading;
- cryptocurrency mining;
- coin stacking.
Let’s consider each point in more detail:
Investment is the placement of capital to make a profit.
Trading is a bunch of operations with assets to make a profit.
Mining is the confirmation of transactions on the blockchain network to make a profit.
Staking is placing funds on exchanges or wallets to make a profit.
The start of cryptocurrencies, of course, was laid by Bitcoin (BTC).
Bitcoin is the first digital coin on the Internet. The Bitcoin digital code is freely available and open to everyone.
With the advent of BTC, the history of cryptocurrencies began. Today the variation of digital coins has exceeded 1000. Cryptocurrency projects have found applications in many areas of human activity. To assess their prospects, a simple analysis of their appearance and the process of development is sufficient.
Despite the accelerated pace of development of blockchain technology, cryptocurrencies are popular. Still, a relatively small percentage of people use them. Imagine how the market will change with the gradual arrival of millions of new users. Along with the gaining popularity of cryptocurrencies, the digital currency market is also developing. The main reason is the creation of thousands of new coins. Such projects collect billions of dollars with only one purpose — the introduction of cryptocurrency to solve people’s everyday problems.
Let’s summarize. Digital currencies are at the peak of popularity and are widely discussed by the masses. The cryptocurrency world attracts more people who want to invest their savings in digital money every day. There are also quite a few active traders. Some users are waiting for a massive increase in the price of a specific asset to make money. Some traders dynamically trade on the stock exchange regardless of the trend in the market. Mining is a popular way to get cryptocurrencies. This method has a broad audience of fans, and many even use it as their primary income source.
With the growing popularity of digital funds, society increasingly wants information about the industry as a whole and the experience of profitable operation of existing cryptocurrencies. Of course, users always want to be the first to know about the ongoing changes in the field of cryptocurrency funds.
The registration process is straightforward, and it will not take more than 3 minutes. You just need:
- Enter your email address and password (remember this data for future logins);
- Indicate full name and country of residence;
- Accept the “User Agreement.”
After completing the registration stage, you will have access to operations and further lessons.
Well? Let’s go further. The next lesson is about Bitcoin, how to store it, buy it, and make transactions. Go to the topic “Bitcoin: principles of work and investment.“