All about cryptocurrency for beginners
To understand the differences between cryptocurrencies and traditional currencies, imagine regular fiat money, such as US dollars and euros, but entirely digital and independent of banks or governments — that’s cryptocurrency https://aus-online-casino.com/means-of-payment/online-casinos-with-muchbetter/.
The European Commission published a digital finance strategy in September 2020. This included a draft regulation on Markets in Crypto-Assets (MiCA), which aimed to provide a comprehensive regulatory framework for digital assets in the EU.
All about cryptocurrency for beginners
This is the simplest approach to crypto investing. The basic approach is to buy a cryptocurrency and hold it for the long-term (or HODL, as it’s referred to in the crypto world). Then, at a later date once it has increased in value, you can sell the crypto at a profit.
Governments and regulatory bodies worldwide are grappling with how to regulate cryptocurrencies. Issues such as taxation, money laundering, and consumer protection are at the forefront of regulatory discussions. Uncertain and evolving regulations can impact the growth and adoption of cryptocurrencies.
At the heart of cryptocurrency is blockchain technology. A blockchain is a distributed ledger that records all transactions across a network of computers. Each transaction is grouped into a ‘block’ and linked to the previous block, forming a ‘chain’. This structure ensures the integrity and chronological order of transactions.
All about investing in cryptocurrency
Tip: Operational risk, or the possibility of your broker or platform being a scam or going bankrupt, applies to all assets. But, it has been historically higher in the crypto sector. To reduce this risk, make sure you use a trusted and secure trading platform.
Though cryptocurrency is technically a currency, it’s also a digital asset, which means you can invest in crypto like you would with other asset classes, like stocks and bonds. That’s why you’ll commonly hear cryptocurrency be referred to as a “cryptoasset”.
Cryptocurrency is decentralized, meaning it’s not controlled by any government or financial institution. Instead, cryptocurrencies rely on a technology called a blockchain, a distributed ledger that records all transactions across a network of computers.