Cryptocurrency Explanation for Dummies

By Editor
By October 20, 2022 October 25th, 2022 Blogs

The market of digital assets is evolving, bringing more and more new products and opportunities to make a profit or even make a business. The most popular are NFT platforms, marketplaces, metaverses, GameFi projects, DeFi platforms, etc. You can become an early investor in a promising project that will expand and receive wide adoption over time, bringing you significant income.

If you look at any cry pro ranking or a chat, you can see live crypto prices constantly changing, moving up and down. Why does it happen so, and what is crypto for dummies? Let’s discuss it in today’s article.

What is Crypto in Simple Terms?

What is cryptocurrency for dummies? Crypto is digital money that has no physical form. While traditional currencies are issued and regulated by banks and the government, crypto-assets do not depend on any of them. Cryptocurrencies are much more reliable because they do not imply using intermediaries for money transfers. Transactions in digital assets are not as expensive as money transfers, for example, through banks.

How can I use crypto:

  1. You can buy crypto and become an investor in some promising project.
  2. You can use crypto as a payment method and buy goods and services with it (travelling, booking, gas stations, shots, etc.).
  3. You can trade crypto using exchanges. Since live crypto prices are incredibly volatile, it allows receiving a profit from those price fluctuations daily.
  4. Play blockchain games and receive tokens and NFTs.
  5. Become a participant of the metaverse and start your business in it.

We talked about high crypto price volatility. So let’s discuss what prices depend on. First of all, it is demand and supply in the market. Depending on the market trend, coin prices drop and rise. For example, when some prominent crypto investor sells his portfolio rapidly, it creates panic in the market, and other investors start to get rid of their coins. It reduces demand and, thus, moves coins’ prices down. If some states ban the mining of some coins, that also can affect the coin’s rate. That once happened when China imposed restrictions on BTC crypto, causing a huge outflow of miners from the state and reducing the coin’s price.

If you are a beginner crypto trader or investor striving to know more about the industry, visit the White Blog – a resource with articles and helpful guides, quizzes, coin reviews, etc.