|Get to know crypto before investing in the digital asset|
Cryptocurrency or usually known as Crypto is being talked about lately because the funds given are very large and very tempting for many people. Therefore, a lot of people are interested in getting into the crypto world and investing their money in this digital asset. But before doing that, it would be nice for us to know what crypto is before investing in these digital assets. Basically cryptocurrency is just another type of currency. It's just that at this time, cryptocurrency is considered more as a digital asset than as a medium of exchange or exchange rate.
Cryptocurrency is a digital asset based on blockchain technology. Blockchain or block-chain is a set of data and information that is managed by a computer program using cryptography principles. Cryptography plays a role in protecting the security of digital assets. Cryptography also ensures that a digital asset cannot be counterfeited. So, cryptography is a secure and secret process that is only known by both parties, namely the sender and the recipient.
Cryptocurrency or crypto currency is divided into two, namely Bitcoin and Altcoins. Bitcoin is one of the many cryptocurrencies that exist. So, crypto currency is not just Bitcoin. Bitcoin was created in 2009 and is one of the cryptocurrencies with the largest market capitalization today.
Even the market capitalization of Bitcoin has beaten the stock market capitalization of the largest banks in the world. Bitcoin was originally created with the aim of being an alternative to fiat currencies. However, now Bitcoin can be used as a digital asset to invest. Altcoins or an abbreviation of alternative coins are all coins other than Bitcoin.
Examples are Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), Litecoin (LTC) and others. Not only Bitcoin, Altcoins can also be used as digital assets to invest.
Therefore, for novice investors who want to dive into the world of crypto and invest there, they must understand what they are investing in and what risks they will accept when they enter the world of crypto or Cryptocurrency.