What is Crypto? How to invest in Crypto effectively

Overview of Cryptocurrencies!

Crypto, commonly known as cryptocurrency, is a sort of digital currency that uses Blockchain transaction data to operate. Crypto is also known by various terms such as electronic money, crypto currency, digital cash, and so on.

Many people refer to Crypto as a virtual currency, however this term isn't exactly accurate. Because virtual money isn't worth anything, for example, money in the game. Crypto's worth is real, and it can be turned into assets, swapped, and purchased and sold.

Crypto is classified as a form of digital asset if we analyse it from a technological standpoint. To carry out the trade procedure, crypto works as an intermediary. This method frequently employs secure cryptography to ensure smooth transactions. Users may easily regulate the creation of extra units and verify account transactions from there.

Cryptocurrencies use cryptographic techniques, making them impossible to forge or manipulate. Furthermore, individuals who use Crypto ensure that their transaction data is entirely safe.

Crypto may be easily understood in the same way as traditional currencies such as USD, EUR, VND, and others are. This currency, on the other hand, is fully based on the Internet. They are not subject to any management from organisations or governments, in particular. Furthermore, all transaction data is kept anonymous.

Low cost, quick speed, and excellent security are all advantages while trading Crypto. The "encrypted form of paper money" is what this is referred to as.

Cryptographic features and classification

Decentralised

Cryptocurrencies that are decentralised do not rely on a central computer or server. They are dispersed across a network with thousands of computers participating. A decentralised network is what this is called.

Digitising

Cryptography is a type of digitalization that does not exist in the physical world. As a result, you cannot hold Crypto in the same way that you would normal paper money.

Incognito

You do not need to disclose any personal information when exchanging cryptocurrencies. Furthermore, there are no necessary rules for the owner or user of cryptocurrencies.

Independent

No third party or middleman manages Independent Crypto. As a result, users have complete control over their money and data at all times. They can also participate in the network's transaction process.

Encrypted

You will be given a unique password to use during the transaction period. This protects your information from being accessed by strangers. One of Crypto's defining features is the use of cryptography.

Globality

Each country uses its own currency called fiat currency. This currency can only operate within certain territories. However, Crypto is quite the opposite. This cryptocurrency can work around the world. This is considered a non-national currency.

Popular Cryptocurrencies

Crypto, as previously said, is derived from Bitcoin. However, thousands of these coins are currently available on the market (statistically about 3021 types). Furthermore, there are a lot of coins that have not been updated.

Crypto's rapid growth demonstrates that this currency is still gaining traction. In addition, the bitcoin investing sector is gaining prominence due to its efficiency potential.

There are two sorts of cryptocurrency: Coins and Tokens.

Coin

This is a Blockchain-based money that is totally self-contained. Coin is responsible for resolving Blockchain-related issues such as payment, security, finance, application development, and so on.

At the moment, two popular coins are Bitcoin and Altcoin.

1. Bitcoin: The most popular cryptocurrency, based on the Bitcoin Network. The following features of this coin drew the attention of users:

• High liquidity.

• The highest daily trade volume.

• The most valuable cryptocurrency in terms of market capitalization.
  

2. Altcoin: A combination of the words "alternative" and "coin." All coins other than bitcoin are referred to as altcoins. Altcoins have a purpose that is very similar to that of bitcoin. Currently, the most popular cryptocurrencies like Ethereum, Tether, Litecoin, and others can be followed.

Token

The money is based on projects that are created on a specific Blockchain. Tokens operate on a certain coin's blockchain. Most tokens follow the ERC-20 standard and use the Ethereum blockchain.

Solana (SOL), Binance Smart Chain (BSC), Avalanche (AVAX), and even bitcoin are used to create some tokens. Startverse Token (SVE) is a BEP-20-based e-wallet platform.

The benefits and drawbacks of Cryptocurrency

Advantages

1. It is not governed by the government

The government has the power to freeze your account if you use paper money. Furthermore, you may face difficulties in undoing the local currency transaction. This is not possible with cryptocurrency because the government does not control it.

2. Transaction fees are low

The cost of a cryptocurrency transaction is nearly nil. Many Crypto coins are currently pushing for free transfers. Meanwhile, transferring money by bank incurs a fee, which can be fairly significant if you relocate internationally.

3. Quick transaction times

Money transactions through a bank might take anything from a few hours (domestic) to several days (international) (overseas). Even transferring Vietnamese money to foreign countries takes no more than 15-20 minutes with Crypto.

4. International Business Transactions

You can exchange Crypto with anyone in the globe in a matter of seconds. Crypto, in instance, is simple to use and costs the same as paper money.

5. Inflation and counterfeiting are not a problem

The amount of cryptos is limited and cannot be increased or decreased (Bitcoin has 21 million coins). As a result, cryptocurrencies will not be issued in the same way that conventional money is. Furthermore, because Crypto exists in physical form, it cannot be forged.

Disadvantages

1. High volatility

The most significant disadvantage of cryptocurrency compared to gold and paper money is its lack of consistency. Cryptocurrency is extremely volatile. Bitcoins, for example, were just $1,000 at the start of 2017, but by the end of the year, they had risen to $20,000. Above all, if someone has a large enough number of coins, the Crypto market is incredibly easy to manipulate.

2. Security and safety

When it comes to Crypto, if you don't have appropriate information and abilities, you'll be vulnerable to data theft. Hackers are continually devising new ways to gain access to your cryptocurrency wallet. However, if you are a wise and conscientious user, you will understand how to keep your cryptocurrency safe.

3. Criminally vulnerable

This has been Crypto's major issue for quite some time. Crypto is frequently targeted by a variety of criminals due to its anonymity and lack of control over information. They used cryptocurrency to launder money on underground markets. Startverse’s Cryptocurrency

Startverse is a Metaverse game for everyone, who wants to build their own startups. Here you can be a boss, a famous artist, a handsome pizza delivery guy, you can even be the owner of a casino or build a guild specialising in land contractors and do whatever you want with your empire! The game will has two main currencies: Coin (SVC Token): This is the virtual currency of the system born for players, used throughout the game and unlimited. SVC will be used for upgrade and in-game purpose actions

Token (SVE Token): This is a rarer and more stable coin, players can only receive during special events. SVE will be used to buy/borrow from the marketplace. In the next article we will talk about how to get Coins and Tokens in Startverse! If you have any questions or would like to discuss this post with Startverse, please leave a comment below!

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