What is Crypto? | INN

What is cryptography?Understanding digital currencies

Investopedia defines The term cryptocurrency is “a digital or cryptocurrency protected by cryptocurrencies, making counterfeiting or double payments nearly impossible.”Cryptocurrencies are not physically held goldIt is also not printed or coined at a central bank like traditional currencies such as banknotes and coins.

Cryptocurrencies are digitally “mined” using computer hardware and software programs that employ blockchain technology over a powerful network of computers called nodes. These nodes generate cryptocurrencies while maintaining transparent and verifiable transaction records. Each generated coin can be transferred between crypto accounts and can be used to pay for goods and services.

Bitcoin, The first cipher in the scene, Created in 2009 by software developer Satoshi Nakamoto. There is no endless supply of Bitcoin. Rather, the total number of minable tokens in the Bitcoin network is 21 million. This limited supply of Bitcoin makes it more valuable and therefore more attractive to investors.

If you want to know more about Bitcoin mining, check out INN’s guide. “What is Bitcoin Mining?“”

What is cryptography?Investment method

Cryptocurrency

Bitcoin may be the first cryptocurrency, but it’s far from the only digital currency available for more than a decade. Other popular options include Bitcoin Cash, Dashcoin, Ethereum, Litecoin and Ripple.

Investors interested in crypto space can buy or sell individual crypto coins or parts of crypto coins directly from numerous crypto exchanges and peer-to-peer crypto trading apps. These include Coinbase (NASDAQ:coin), CoinSmart Financial (NEO: SMRT)BlockFi, Binance, Gemini.

Interested in crypto trading in Australia? Read the INN guide How to buy Bitcoin in Australia..

Cryptographic stocks

Cryptocurrency mining stocks It provides another great entry point to this market and provides access to those who don’t really want to own the cryptocurrency itself. Cryptocurrency mining companies use super-powerful computers to mine new crypto coins. The Cryptocurrency mining market It will grow at a compound annual growth rate of 28.5% from 2021 and is projected to reach nearly US $ 5.3 billion by 2028.

Some of the largest crypto mining stocks are Marathon Digital Holdings (NASDAQ: NASDAQ:Mara), Riot Blockchain (NASDAQ:Riot), Hat 8 mining (TSXV:HutNASDAQ: HUT) and HIVE blockchain (TSXV:HIVENASDAQ: HIVE).

On the occasion of crypto stocks, China-based Canaan (NASDAQ:can), A pioneer of Bitcoin mining machines with ASICs and one of the world’s largest crypto mining hardware providers. Apart from that, the gaming industry is adopting blockchain technology through crypto games. This allows gamers to earn cryptocurrencies while playing digital games. One of the most notable crypto game stocks is Axie Infinity (NASDAQ: NASDAQ:AXS).

Cryptographic funds, trusts, ETFs

With cryptocurrency Cryptographic trust It represents a new way to invest in the crypto market. Below is a selection of crypto investment products available for investor consideration:

• Bitwise 10 Cryptographic Index Fund (OTCQX:BITW). — The Bitwise 10 Crypto Index Fund tracks the performance of the Bitwise 10 Large Cap Crypto Index, and then tracks the 10 largest cryptocurrencies.

• Bitcoin Fund (TSX:QBTC). — The Bitcoin fund is run by 3iQ and is the first in Canada to offer cryptocurrency exposure to accredited investors. This closed-end fund is designed to invest only in Bitcoin.

• Nine Point Bitcoin Trust (TSX:BITCTSX: BITC.U) — This low rate trust is traded in both US and Canadian funds. Investors can buy shares in a trust that closely tracks the underlying assets.

• Grayscale Ethereum Classic Trust (OTCQX:ETCG). — This trust tracks the price of Ethereum Classic tokens. Investors can buy and sell stocks through traditional securities accounts.

Cryptography Exchange Traded Fund (ETFs) are another investment tool that exposes investors to the growing demand for cryptocurrencies. Purpose Bitcoin ETF (TSX:BTCC), CI Galaxy Ethereum ETF (TSX:ETHX.U) And Evolve Cryptocurrencies ETF (TSX:ETC.U) — Read the INN guide Investing in cryptocurrency ETFs..

What is cryptography?The future of the industry

When So many volatility In the global market, it is difficult to make predictions about crypto space.

However, Bitstamp states that one of the most important findings from the study highlighting the Crypto Pulse report is that digital assets are expected to overtake traditional investments. The cryptocurrency exchange surveyed 5,502 institutional investors and 23,113 individual investors from 23 countries. The results show the majority of people who are said to believe this will happen within the next decade.

In an interview in early 2022, Justin Hartzman, CEO and co-founder of CoinSmart Financial, said: Told INN He believes the crypto market is rewarding for investors with long-term strategies.

“There may be some bumps along the way, but the crypto market tends to reward investors who hold it confidently, as the digital economy’s user base grows and new use cases continue to be built. , This trend is expected to continue, “Heartsman said.