- The Future of Financial Freedom: Cryptocurrencies
If you still hesitate, think again…
It’s like learning a new language when it comes to cryptocurrency. It requires time, work, dedication, research, and a lot of practice. Although crypto is a relatively young field that is still in the early phases of adoption, the road ahead is both fascinating and hopeful.
First and foremost, where did “Crypto Lab” come from?
Financial literacy has never been more vital than it is now, given the challenges the world is facing and new advancements in the financial system. As a 35-year-old entrepreneur and current MBA student, I began to consider new investment alternatives and enhance my financial literacy two years ago in order to fund my MBA. This is how I became acquainted with blockchain and, as a result, cryptocurrencies. The more I learned about this new revolution, the more enthralled I got, prompting me to continue to expand my knowledge. For nearly two years, I dedicated myself to learning about blockchain and cryptocurrency by reading and watching every valuable resource, book, and movie available. To survive in this volatile market, I’ve learnt the fundamentals of trading and attended a variety of online courses, including an executive program at MIT Sloan School of Management. Finally, I was able to fund my MBA by investing in cryptocurrency since 2019.
I strongly believe that being financially literate and so achieving financial freedom will be one of the most invaluable skills of this decade. That is why my primary goal with “Crypto Lab” is to encourage everyone, particularly young people, in improving and spreading their financial literacy. Voila let’s start!
Including crypto in your life
If you’re still undecided about whether or not to incorporate crypto into your life and aren’t sure where to start, think about your future ambitions, dreams, and goals. Regardless of how long your time frame is, you will undoubtedly require sufficient monetary and non-monetary resources to achieve your objectives. And cryptocurrencies, a new digital asset class, may be a potential medium for you to reach the financial independence you desire!
It will create a new financial system for the entire world!
There is no doubt that we are witnessing the emergence of a new digital financial system, and while several countries are developing their own digital currencies, blockchain and cryptocurrencies, with their peer-to-peer and decentralized technologies, are gaining attention faster than ever.
To give you a quick overview, a cryptocurrency is a decentralized digital asset based on blockchain technology that is protected by cryptography and used as a medium of exchange. A procedure known as mining is used to transfer it amongst peers and confirm it in a public ledger. Cryptocurrencies are issued by individuals rather than institutions and operate in a decentralized, transparent manner, making them nearly hard to counterfeit.
What is “fault-tolerant — consensus mechanism”?
Behind blockchain and cryptocurrencies lies a fault-tolerant mechanism, called a consensus mechanism. It aids in the formation of consensus and trust across a decentralized computer network, as well as the protection of software from malicious attacks. Proof of Work (PoW) and Proof of Stake (PoS) are the most widely utilized consensus mechanisms, with PoW being the older of the two (used by Bitcoin, Ethereum 1.0, and many others) and PoS being the younger consensus mechanism. In the following articles, we’ll go over PoW and PoS in further depth using various instances.
The Top 10 Cryptocurrency in the World (as of 7th January 2022)
Because there are over 16.000 currencies, market capitalization values help in identifying those with the highest valuation. Cryptocurrencies have a market cap of $2.07 trillion, which is around one-fifth that of gold, which has a market cap of $11.3 trillion. While Bitcoin is the most valuable cryptocurrency, with a market cap of 817$ billion, the remaining 16.252 altcoins have a market value of 1.25 trillion.
The of the 10 biggest cryptocurrencies by market capitalization. *Source: Coinmarketcap (as of January 7th,2020)
Towards myriad of currencies
Aside from Bitcoin, the cryptocurrency market includes a wide range of currencies based on a variety of blockchain projects. Despite the fact that many people use the terms crypto, coins, and tokens interchangeably, it’s critical to understand how they vary in order to obtain a fundamental knowledge. The distinction is primarily based on the asset’s functionality, and it can be divided into two types: coins and tokens.
Coins are any cryptocurrency that functions as a means of exchange and has its own blockchain, such as Bitcoin, and altcoins are coins that are not Bitcoin.
Furthermore tokens are cryptocurrencies that function on another blockchain and benefit from its technology because they do not have their own blockchain.
We’ll continue to discuss additional helpful topics in future articles, including crypto terminology, a more extensive analysis of the differences between coins and tokens, how to purchase, sell, and exchange crypto assets, right wallet usage, and secure storage, among many others.
Finally, it can be easier to understand cryptocurrencies when we group them into distinct categories. The following are some of the most important categories with examples of related projects;
· Stores of Value (e.g. BTC)
· Smart Contracts (e.g ETH, SOL, ADA…)
· Decentralized Finance (e.g. LUNA, LINK, UNI…)
· Privacy (e.g. XMR, ZEC, DCR…)
· Exchange Tokens (e.g. BNB, CRO, FTT…)
· Stablecoins (e.g. USDT, USDC, DAI…)
· Metaverse (e.g. AXS, SAND, MANA…)
· Non-Fungible Tokens (e.g. ENJ, OMI, CHZ…)
Clicking on the related hyperlinks will take you to the websites of each of the currencies listed above. If you’re thinking about investing in the crypto market (and before you make a decision), you should study each asset’s whitepaper to assess the concept, technical details, significant milestones, and roadmap to have a better understanding.
Cryptocurrencies are the assets of the future financial system. Start learning and discovering right away, and not miss your chance to be part of the future!
- Date of publication:
- Mon, 01/10/2022 - 05:13
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