The blockchain industry has become part of the global “financial revolution” in recent years. Derivative of this system are cryptocurrencies, which have proven to be extremely popular, both among investors retail and institutional. The main reason for so much interest digital currencies are the innovative solutions behind them, which in turn often attract speculative increases. In recent years, the blockchain industry has become a global "game speculative", and the price of the "king of cryptocurrencies" - Bitcoin, is tracked by financial analysts from whole world. Despite the high risk associated with cryptocurrency trading, the industry that initially it was a technological curiosity, even the largest institutions became interested in it financial companies such as Goldman Sachs or JP Morgan, as well as technological giants - Intel and Nvidia.
The world is constantly changing and technology is something that is developing extremely fast. Understanding this process, in the following guide, we will provide a handful of basic knowledge about cryptocurrencies and the most popular ways to invest in this market. We will also describe our offer for cryptocurrencies and how to trade via the XTB trading platform.
Interesting crypto-numbers
What are cryptocurrencies?
Cryptocurrencies are digital assets that have only a virtual form that can be used among others in investments and trading, online shopping, data verification, as well as on platforms for players or in the Metaverse universe.
Cryptocurrencies are based on cryptographic technology that makes it impossible to counterfeit or double issue, and some of them like, Bitcoin or Cardano, due to encoded conditions are limited in advance. This is a significant aspect that distinguishes the above-mentioned tokens against the background of traditional currencies, the amount of which in circulation can be controlled by the central banks of individual countries, e.g. by "printing" them. No governments or banks exercise control over the creation of cryptocurrencies, or the method of their exchange, and the price of tokens is shaped almost exclusively by demand and supply. However, it should be remembered that decisions individual regulators may have an indirect impact on the power of buyers and sellers.
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What is blockchain?
Under this mysterious word there is an information recording system where all transactions are stored are cataloged in a virtual ledger known as the blockchain, i.e just blockchain. The undoubted advantage of this technology is its decentralization, which constitutes the opposite of the current financial order. Currently, any transactions that we include, e.g. when paying with a card in a store or making a transfer, are saved on servers of a given bank. It is this bank, as the central unit, that is in possession of all information regarding our financial activity (excluding cash transactions). This issue is increasingly being questioned in the sphere of public debate. In case of blockchain, such a central unit does not exist. Any records related to the activity financial information is stored in a decentralized network where each connected computer it forms part of this information storage system while also storing information from the entire chain. In addition, each of the network participants has equal access to information stored in it, and the issues of personal data are protected by strong cryptographic systems that simultaneously provide anonymity and also offer full transparency regarding the history of individual transactions on the market.
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Within the cryptocurrency market, blockchain technology makes it possible to determine the ownership of based on recording the history of a given token in real time. individual information transactions are saved in the network to which each chain participant has access, and the authenticity of the entered data is verified in the Proof-of-Work model or Proof-of-Stake of this chain. We can define blockchain technology as part of the process "evolution of money", which enables secure transfer of value, eliminating the human factor and reducing the likelihood of fraud and mistakes. However, it should be remembered that transactions concluded within the blockchain are irreversible, and investors in the cryptocurrency market still they are relatively often victims of fraud and all kinds of attempts to extort funds.
