bitcoin
Bitcoin (BTC) $ 20,157.00
ethereum
Ethereum (ETH) $ 1,119.39
tether
Tether (USDT) $ 1.00
usd-coin
USD Coin (USDC) $ 1.00
bnb
BNB (BNB) $ 219.32
binance-usd
Binance USD (BUSD) $ 1.01
cardano
Cardano (ADA) $ 0.472578
xrp
XRP (XRP) $ 0.328924
solana
Solana (SOL) $ 34.94
dogecoin
Dogecoin (DOGE) $ 0.068114

Three Principles for Understanding Cryptocurrency

Cryptocurrency is an often-misunderstood field, owing to its relative infancy and steep learning curve. However, it represents a totemic shift in the way individuals can manage their assets, and a revolutionary way to bring large-scale transactions into a secure and independent future. Understanding the following three facets of cryptocurrency will go some way to lowering that barrier to entry, and enable you to interact with the future of finance as an individual.


Cryptocurrency as a Casino Chip

One of the simplest analogies with which to understand the importance of cryptocurrency to the wider financial market, and the interrelationship of technology with the function of cryptocurrency, is to think of them in gambling terms. A cryptocurrency token can be likened to a casino chip, or more accurately the digital wallet of an online casino. The token does not have an intrinsic value, and generally cannot be used outside of the ‘casino’.

However, it holds value, and can be used within the casino to enable access to its games and services. Much in the same way that a live casino allows users to access a range of games from a single online account, technology is responsible for your access to cryptocurrency transaction, exchange and engagement. In short, blockchain is the mechanism by which cryptocurrency holds value and is utilized.

Cryptocurrency as Decentralized Finance

So why is this a good thing? In order for a cryptocurrency to continue to hold value, the element of ‘trust’ needs to be introduced – and herein lies the real benefit for many cryptocurrency owners and users. Cryptocurrencies, and the platforms on which they are built, are known as ‘decentralized’; they are not linked to centralized systems, whether mainstream banks or sanctioned enterprises.

The value of the is not decided by the dollar, or even the price of gold. It is decided by those that mine it, and those that transact it. As a currency, it operates separately from centralized financial solutions, and is hence immune to the volatility of those solutions. If the dollar falls, the will simply be worth a larger amount of dollars. Ultimately, your assets are safe in the blockchain.

Cryptocurrency as a Finite Resource

The last thing to address is the use of the term ‘mining’. Another helpful way to envision cryptocurrencies, especially where transacting in a digital space can feel immaterial, is in terms of gold. Cryptocurrencies are not intrinsically linked to standards like gold or silver, but as a currency they act like them. This is because cryptocurrencies are a finite resource. ‘Proof-of-work’ currencies such as and are ‘mined’ via computer processing, essentially completing complicated equations to solve blocks and hence ‘mint’ them into existence. Bitcoin, as an example, was designed with 21 million possible coins, and its price volatility can be attributed in part to the availability of new coins over time. The number of new coins minted decreases exponentially over time, as with finite earth resources like gold. This enables PoW currencies to act like gold in decentralized systems.

With these basic approaches to understanding the crypto world under your belt, you can begin to interact with it in earnest and with confidence. Knowing is half the battle, and with a shrewd investor’s mindset you can be sure to turn your foray into cryptocurrencies into a profitable and secure long-term venture.

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USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 20,157.00
ethereumEthereum (ETH)
$ 1,119.39
tetherTether (USDT)
$ 1.00
xrpXRP (XRP)
$ 0.328924
litecoinLitecoin (LTC)
$ 53.14
dogecoinDogecoin (DOGE)
$ 0.068114
bitcoinBitcoin (BTC)
19.045,54
ethereumEthereum (ETH)
1.057,67
tetherTether (USDT)
0,94486
xrpXRP (XRP)
0,310787
litecoinLitecoin (LTC)
50,21
dogecoinDogecoin (DOGE)
0,064358
bitcoinBitcoin (BTC)
16,371.31
ethereumEthereum (ETH)
909.16
tetherTether (USDT)
0.81219
xrpXRP (XRP)
0.267149
litecoinLitecoin (LTC)
43.16
dogecoinDogecoin (DOGE)
0.055322

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