What is Crypto?

In the world of investing there are lots of different asset classes, one of them include, cryptocurrencies. When you invest in a cryptocurrency, you're essentially acquiring a piece of a digital network. Instead of being backed by a government or company, these assets rely on blockchain technology and the trust of the community.

What's blockchain technology? Blockchain technology is used by cryptocurrencies to record all transactions across a network of computers. Each transaction is added to a “block” and then added to a “chain”. That’s why its called Blockchain.

The reason cryptocurrencies move up and down is because of one thing, supply and demand. In the crypto world, there are two types of cryptocurrency coins/tokens.

Supply

• Fixed Supply-Some cryptocurrencies, have a fixed supply cap. For example, Bitcoin has a maximum supply of 21 million coins that will ever be created. This supply can impact its price movement by creating scarcity essentially making the cryptocurrency more valuable.

• Inflationary Tokens-Other cryptocurrencies, don’t have a fixed supply cap. These cryptocurrencies continuously make new coins. This can impact on the supply over time because if there are more of the same cryptocurrency, then the supply increases which lowers its holding value.

When people buy a cryptocurrency, the demand goes up because of the fewer coins there are in supply. When people sell, the demand goes down because of the more coins there are in supply.

NOTE: For movement of the price of a specific cryptocurrency, a significant amount of purchases or sales is needed.

Altcoin

Altcoins get their name for being an alternative solution instead of Bitcoin. Their use is to provide better solutions than Bitcoin. The largest altcoins include-

• Ethereum

• XRP

• Solana

• Dogecoin

Bitcoins market cap reached 1 Trillion faster than any company.

Why’s this important: Companies around the world integrated Bitcoin into their systems and accepted it. Bitcoin experienced significant growth in value since 2009(its creation).

Over the years markets/brokers added Bitcoin and other cryptocurrencies to their platforms, proving safety and market trust.

Bitcoin’s technology also evolved, you could mine Bitcoin with a simple computer and get hundreds of Bitcoin a week. But now, you need heavy and expensive equipment to mine it and be profitable.

Bitcoin’s creation ignited the beginning of a financial revolution, introducing the world to a decentralized digital currency. Cryptocurrencies are not just a new way to transact, they can also improve the future of money and technology. The journey of cryptocurrencies is far from over, it’s only just begun.