• Learn all about cryptocurrency
• All about cryptocurrency for beginners
• All about cryptocurrency trading

All about cryptocurrency

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High risk: Because they are largely unregulated, cryptocurrencies come with a notable degree of risk for investors. No government guarantees them, and they are subject to a hard-to-anticipate demand cycle.

Learn all about cryptocurrency

Bitcoin is pseudonymous, rather than anonymous; the cryptocurrency in a wallet is not tied to a person but rather to one or more specific keys (or “addresses”). Thereby, bitcoin owners are not immediately identifiable, but all transactions are publicly available in the blockchain. Still, cryptocurrency exchanges are often required by law to collect the personal information of their users.

Bitcoin is pseudonymous, rather than anonymous; the cryptocurrency in a wallet is not tied to a person but rather to one or more specific keys (or “addresses”). Thereby, bitcoin owners are not immediately identifiable, but all transactions are publicly available in the blockchain. Still, cryptocurrency exchanges are often required by law to collect the personal information of their users.

On 17 February 2022, the Department of Justice named Eun Young Choi as the first director of a National Cryptocurrency Enforcement Team to help identify and deal with misuse of cryptocurrencies and other digital assets.

Cryptocurrency prices are much more volatile than established financial assets such as stocks. For example, over one week in May 2022, bitcoin lost 20% of its value and Ethereum lost 26%, while Solana and Cardano lost 41% and 35% respectively. The falls were attributed to warnings about inflation. By comparison, in the same week, the Nasdaq tech stock index fell 7.6 per cent and the FTSE 100 was 3.6 per cent down.

Some newer cryptocurrencies also aim to offer more stability. These stablecoins are pegged to stable assets like the US dollar to reduce volatility, making them useful for people who want the benefits of cryptocurrency without the drastic price swings.

Binance, founded in 2017, has become one of the largest and most influential cryptocurrency exchanges in the world. It offers a wide range of services, including trading, margin lending, and a decentralized exchange, making it a critical player in the market.

All about cryptocurrency for beginners

One of the most well-known cryptocurrencies is Bitcoin, which was introduced in 2009. However, there are now thousands of different cryptocurrencies available, each with its own unique features and purposes.

Others see crypto as a hedge against the devaluation of regular currency, political instability, and meddling from third parties. Then there are those who view crypto investing as a speculative venture, aiming to profit from the ups and downs of crypto prices.

USD Coin (USDC) is a stablecoin pegged to the US dollar on a 1:1 basis, ensuring that each USDC is backed by one US dollar held in reserve. USDC aims to provide a stable, secure, and transparent digital dollar, leveraging blockchain technology to offer the advantages of fast, low-cost transactions while maintaining price stability. It is widely used in the DeFi ecosystem, for remittances, and as a stable store of value, making it a popular choice for individuals and businesses looking to leverage the benefits of cryptocurrency without the associated volatility.

Ethereum relies on a consensus mechanism called Proof of Stake (PoS), which uses validators that stake tokens on the blockchain and verify transactions before they are added to the chain. The staking process earns validators rewards in the form of ETH — just like how Bitcoin miners get rewarded with BTC for their process.

All about cryptocurrency trading

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Exchanges bring their own steep learning curve as you’ll need to get to grips with the technology involved and learn how to make sense of the data. Many exchanges also have limits on how much you can deposit, while accounts can be very expensive to maintain.

Scalping is generally more suitable for experienced traders. For beginner traders who know what they’re doing, however, identifying the right patterns and taking advantage of short-term fluctuations can be highly profitable.