Much is said about the cryptocurrencies, the role it is playing in investments and how we can take advantage of them. For many, the situation is one of hope, while for others, skepticism is the most notable tonic. We are going to clear your doubts about the crypto world and if these values are treated as a store of value or as a investment. If you are here it is because you already know something about cryptocurrencies. They are nothing more than virtual currencies that do not have a physical format, and that operate under the blockchain network. The crypto name is given because they work under cryptographic encryption. No one can make copies of cryptocurrencies.
Cryptocurrencies are not backed by any government or economic institution so far it has only been Costa Rica that has taken the most obvious steps towards Bitcoin incorporating it into its official monetary system. Cryptocurrencies, not having a physical format, are stored in the large database that is blockchain and customers can store them in so-called wallets or digital wallets. Although blockchain deserves a separate article, we can say that it is the basis on which these currencies operate, with all operations being recorded in a unique and inviolable manner. When we carry out an operation with cryptocurrencies, all the parties involved in it have to validate it. Also, it cannot be undone. It should be noted that the main advantage of cryptocurrencies is that they may be called to revolutionize the financial world, and that, as they are not subject to the control of any type of institution, they are a totally universal medium. However, this can also be your Achilles heel. As they do not have official support, they are not subject to the Deposit Guarantee Fund or the Investor Guarantee Fund.
What are the 3 most popular cryptocurrencies
To speak of cryptocurrencies is to do so, first of all, of Bitcoin. This was the cryptocurrency that gave birth to everything. It was born in 2008, fruit of the work of Satoshi Nakamoto . Today, it is unknown if this name corresponds to that of a real person or that of a group of no more than 10 individuals who launched this project. Bitcoin is the reference currency, in fact, it could be said that it is the one that the rest look at. It is minted in a figure, virtually, 21 million units of bitcoin, that is its top figure. But in addition to this cryptocurrency there is a huge number of them, it is currently estimated that there are more than 10,000 operating throughout the blockchain network. And in addition to Bitcoin, these two are perhaps the most popular cryptocurrencies, we talk about ethereum and of BinanceCoin . Although it is unfair not to quote, even in passing dodgecoin either Cardano. Ethereum is not a cryptocurrency itself, but the platform on which Ether operates, which is the real name. Launched in 2015, the operations are executed in open source, but unlike Bitcoin, and they are carried out in a much faster way. Therefore, those who are solving the algorithms, the popular miners, they have the capacity to receive more amount of rewards. The Ethers figure is 18 million units. Binace Coin is the crypto of the popular platform Binance . It was launched in 2022, operating under the Ethereum blockchain, but it already does so from its own. In addition, their platform is one of the fastest and has the added ability to validate smart contracts , called to revolutionize the labor, legal and fiscal world. The «smarts contracts» will suppose a change as evident as the cryptos. Binance Coin cap is 100 million units.
What is an investment fund
Talking about investment funds is making it an attractive product when it comes to obtaining a certain return. Its main advantage is that it does not require a very high capital to start investing. It is still a savings instrument in which many people contribute capital that they trade in different ways, whether it is shares or fixed-income securities. An investment fund has the advantage of giving access to a large number of markets that, individually, would be practically unattainable.
Who invests his savings in a Investment fund
it does so trusting that the manager of that fund will analyze the market to find the best opportunities to make the assets profitable. Obviously, there are cryptocurrency investment funds. We always remember the importance of “Don’t put all your eggs in one basket.” Diversifying our investments, also in different virtual currencies, is always a smart measure to try to achieve the best profitability. Therefore, if you are starting out in the world of cryptocurrencies, there is nothing better than looking for a good investment fund with which you can be safe. Investments in cryptocurrencies are always subject to a large number of parameters, like any type of asset. On the other hand, it must always be borne in mind that the volatility she’s very tall. What at first can be an inconvenience, is what allows you to take advantage and obtain great returns. Regarding the possibility or not of investing long-term in cryptocurrencies, it should be noted that not all of them have the same behavior. Studying them and getting to know which ones have the best upward projection will allow you to make a more accurate investment. One of the main differences with respect to Fiat money is that it loses value. Do you remember what you could buy with €10 in 2003? Cryptocurrencies, being decentralized, do not have as many effects as any of the 175 world currencies.
Getting hold of a cryptocurrency portfolio and waiting for results can always be a good idea, remembering that this money does not have to be of extreme necessity and that, although it seems crude to count it, you are willing to lose it. Money that we need is never invested, but on which we expect a series of returns.