You might’ve surely heard that if you prefer to trade bitcoin, the probability of success is pretty high—especially if you’d love to do that on the Exness platform.
The history of the modern cryptocurrency is relatively easy to identify—in 2009, Bitcoin was born, which was the origin of thousands of other cryptocurrencies and a fundamentally changed economic world.
What Is A Cryptocurrency in the Extended Version
A cryptocurrency is a digital asset that can be used as a traditional currency, with some differences.
Cryptocurrencies can be thought of at the most superficial level like all other currencies. The crucial difference is that they are not tied to a country, a bank, or a central institution.
Basically, however, it is still a medium that can be used to offer payment for goods and services. There are many different cryptocurrencies where; Bitcoin is the first and the most well-known.
Or if we sum it up in five words: Cryptocurrencies are electronic, decentralized money.
But if we go in-depth, it is much more like cryptocurrencies that, in many ways, make them essentially different from traditional currencies.
The credibility of a cryptocurrency is based on the fact that all transactions it is used in are stored in a database, or “ledger,” which is familiar to all users.
This list of transactions and holdings of a specific cryptocurrency is checked in connection with dealings but is encrypted so that its details will not be available to anyone.
For the individual, a particular “wallet” is used to store and use a cryptocurrency, a “Bitcoin wallet,” or a Bitcoin wallet.
Characteristics of cryptocurrencies
Its main characteristics, as we have said, are:
- A cryptocurrency or cryptocurrency is a form of digital asset based on a network distributed over a large number of computers. This makes it decentralized (it does not depend on an enormous central computer).
- It is not a physical currency (although it can be stored on devices such as hard drives or external memories).
- Its creation is based on unique cryptography.
- They do not depend on anybody or the government responsible for generating this type of currency.
Cryptocurrencies are systems that allow secure online payments denominated in terms of virtual “tokens,” which are represented by internal accounting entries of the system.
“Crypto” refers to the various encryption algorithms and cryptographic techniques that protect these inputs, such as elliptic curve encryption, public/private key pairs, and hash functions.
How many cryptocurrencies or cryptocurrencies are there?
Today there are more than 10,000 virtual currencies worldwide and counting. In addition, a new one appears every so often, which is created through a process called ICO.
What sets all these currencies apart is the technology, encryption, and philosophy. Most cryptocurrencies use blockchain technology, but it is not the only one.
We must not confuse these networks with wallets or cryptocurrency buying and selling platforms. There are platforms such as Coinbase and Binance that are both buying and selling platforms and digital wallets that allow you to operate with cryptocurrencies or cryptocurrencies quickly and safely.
The latest news of the Blockchain boom predicts more and more the consolidation of virtual currencies and the arrival of more and more investors (even governments have already started buying these assets). We tell you which are the cryptocurrencies of the moment and those that seem to have more future.
Biggest Events in Cryptocurrency
In the midst of a second-year affected by the coronavirus pandemic, the adoption of digital currencies continued to increase across the globe, and the crypto industry flourished to conquer new historical milestones. The new year began with a good fortune with the digital currency market in a bullish move that took Bitcoin above $40,000 for the first time.
Companies in the sector came to the stock market. Some jurisdictions tightened their regulations around crypto. The metaverse ceased to be science fiction, and a nation adopted Bitcoin as its official currency. These were some of the highlights of 2021.
Beeple sold the most expensive NFT in history
An event that had a significant impact in space was the million-dollar auction of a piece of art in the non-fungible token (NFT) format. It was the work “Everydays: The First 5,000 Days”, a collage of JPG images made by digital artist Mike Winkelmann, better known as Beeple, which sold for a staggering $69 million in early March.
Wall Street Banks Adopted Bitcoin
In March 2021, investment banking giant Morgan Stanley became the first central US bank to offer clients exposure to Bitcoin. At the time, the 90-year-old bank announced that its high-net-worth clients would be able to gain access to funds from the leading digital asset for the first time.
Bitcoin conquered new price heights
The widespread adoption and the various historical events that marked the digital currency industry significantly affected the Bitcoin market, which registered several new price records throughout the year.
At the start of 2021, the flagship cryptocurrency surpassed its 2017 high of $20,000. It then continued to break records to reach a price peak of very close to $70,000 in November, while its market capitalization surpassed for the first time once $1.2 trillion, its highest value to date.
Coinbase went public
This year also saw one of the top cryptocurrency exchanges hitting the American stock exchange. Coinbase went public on Nasdaq, the second-largest stock exchange in the United States, marking a historic moment for the industry. After posting a 70% rise in its share price on launch day, the company had a dream debut on the stock market.
China banned cryptocurrencies
The digital asset industry faced one of the most extensive bans in history in 2021. In the middle of the year, authorities in China began cracking down on crypto mining operations, halting digital asset trading, and ultimately put a stop to the growing cryptocurrency industry at the local level.
China launched its CBDC, and other countries followed suit.
This year, China continued to move forward with its central bank digital currency (CBDC) tests that it had started in 2020. Several local banks, retail stores, the Beijing subway, and some ATMs in that city all pushed the digital yuan. The Chinese digital payment system, also called e-CNY, was tested in lotteries and payroll payments for civil servants.
Bitcoin became legal tender.
This 2021, Bitcoin celebrated one of the most outstanding achievements in its history when the first country in the world adopted it as its official currency, something that perhaps not even its creator Satoshi Nakamoto could have anticipated when he invented the cryptocurrency more than ten years ago.
DeFi became a multi-billion dollar industry
In 2021, the decentralized finance (DeFi) space also experienced accelerated growth, which had already been observed during the previous year. This year seemed to gain even more strength.
DeFi became a $200+ billion-dollar industry in October when the space broke a record high in terms of total value locked (TVL), or funds placed as collateral in the various DeFi protocols. Then, at the beginning of December, he broke the record again with more than $260 billion in TVL.
Facebook plunged into the metaverse.
Social media giant Facebook changed its name in November to become Meta and focus on the metaverse, a move that sparked widespread interest in virtual worlds.
Referring to the physical and virtual worlds meeting through technologies such as augmented reality, NFT, and others, the sci-fi concept quickly became a global trend that now includes brands such as Adidas, TIME, Nike, and Pepsi. Even Wall Street banks have taken an interest and anticipate that the metaverse could become a multi-billion dollar business.
Main Crypto Trends in 2022
So, what are the trends of the crypto market in 2022 and what are the best cryptocurrencies to invest in 2022?
Whether the nature of cryptocurrency means that both proponents and opponents have something to say at all—what can stop a decentralized digital phenomenon that is decoupled and unbound?
Maybe the future of cryptocurrency is not a question of “if” but “when”? No one knows for sure, but the opportunity to learn about what cryptocurrencies are has undoubtedly never been better because they are already here, and they will not disappear in the first place.
Trend # 1. DeFi project
Decentralized financing (DeFi) is becoming increasingly crucial after observing the challenges in our economy in dealing with the COVID-19 pandemic. New financial applications based on blockchain technology received the same attention as ICO projects just a few years ago.
Among them are popular new projects that quickly climb to the top of Coinmarketcap’s list. These include Compound, the Band Protocol, and Chainlink, which seems to be the best choice for new investors. There may also be a potential gain if you consider FXTM trading options.
Trend # 2. Crypto is no longer a “nerd” thing
If there is one thing that the cryptocurrency space has improved over the past three years, it is the UX / UI for stock exchanges and wallets. In 2017, many non-technical investors thought that crypto investing was a challenging task to perform. From the creation of a wallet to the navigation of exchange platforms, most people quickly lost the idea of investing because it did not fit into their expertise.
Trend # 3. Companies start buying Bitcoin
Recently, software development company MicroStrategy allocated $ 250 million to buy more than 21,000 Bitcoins. If you are looking for places to buy crypto in New Zealand, you can also check out the Swyftx platform, where they also have an exciting blog with articles about Bitcoin or other cryptocurrencies.
Trend # 4. Shift to a tokenized economy
Since the beginning of crypto, one thing has become commonplace—people like to be compensated for their actions. Companies are known to be able to engage them more easily by rewarding users with their built-in tokens. Take, for example, the Brave browser. With more than 15 million active monthly users, the digital company has become a crypto investor’s favorite. Their concept is pretty simple—reward users with BAT tokens for their exposure to ads.
Trend # 5. The importance of smartphones
It is well known that people surf on their mobile phones first. Google has already optimized its search engine for this reason, and exchanges are pouring large amounts of resources to build a better mobile experience for its users.
What do you think of all these projects? Are you already an investor in some of them? Which do you think will have a better future? Leave us your comments and share!
Which were the first cryptocurrencies one could send/receive?
With the creation of new cryptocurrencies, new platforms have appeared to send, receive and buy different cryptocurrencies, such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
When did the first idea of cryptocurrency emerge?
However, as early as the 1980s, the first ideas were presented about an electronic and encrypted currency that would allow anonymous withdrawals from banks via the encryptor David Chaum.