What are cryptocurrencies?

Cryptocurrencies are virtual currencies that most countries do not recognize as a means of payment for now. The exception is El Salvador, which recognized the most important cryptocurrency (Bitcoin) in 2021. However, this has not prevented the entire market for digital assets from growing rapidly. In March 2022, the total capitalization exceeded in two trillion dollars.

The first and also the most popular cryptocurrency was Bitcoin (BTC). According to many experts, the adoption of Bitcoin is happening faster now than it did with the Internet in the 1990s.

Definition of cryptocurrencies

A distributed ledger system that is based on cryptography (blockchain) is often cited as the definition of cryptocurrency. Investors view cryptocurrencies as digital assets that can be traded at exchange offices, on exchanges, or among themselves. Unlike stocks, cryptocurrencies can be withdrawn from exchanges at any time and transferred to a private wallet. This way, it is the user who has full control over their money and does not have to worry about the government or some institution seizing their assets.

Cryptocurrencies are more than an investment

Increasingly, however, buying cryptocurrencies is no longer seen solely as investing. For crypto proponents, the important thing is that they can secure their wealth this way and easily transfer digital money anywhere in the world if needed. It is also not insignificant that many cryptocurrencies have a limited supply. Thus, they cannot be added to, which could lead to a decline in value over time. The best example of this is Bitcoin. Back when this cryptocurrency was introduced in 2009, it was determined that there would never be more than 21 million BTC.

How many cryptocurrencies are there now?

When asked what cryptocurrencies they know, many people primarily point to Bitcoin (BTC), Ethereum (ETH) and Dogecoin (DOGE). It comes as a big surprise to them to learn that there are many more cryptocurrencies available in circulation. Even if you limit the list to those projects that have websites and recently someone actually wanted to trade them, it’s safe to point out at least a dozen thousand different cryptocurrencies. Of course, most of them don’t really have much value and people who are new to the digital asset market should focus on understanding the projects mentioned at the beginning.

Due to the fact that BTC and ETH have been on the market for years and are increasingly popular with private and institutional investors, they can be considered a relatively safe investment. However, one should not forget that this is still a young market, so one should expect high price volatility.

Znajdź najbliższy kantor kryptowalut lub bitomat

Exchange offices of cryptocurrencies can be found in the biggest Polish cities. Check the list of offices and the exchange procedure at: Exchange BTC – Bitcoin exchange network – FlyingAtom or the list of addresses of 41 Bitomats and their cash balance at Bitcoin ATM Network – FlyingAtom.