Cryptocurrency - a quick start in 2022.

The demand for cryptocurrency investment grows every year. The potential of blockchain technologies and the electronic currency market is limitless. The main advantage is the ability to quickly earn on investments without being limited to buying Bitcoin or Ethereum. All transactions also have a high level of security and are executed without the participation of a bank or payment provider.

Let's take a closer look at the basic terms and features of crypto investing in 2022, what difficulties you may encounter, and how not to lose all your investments.

Terms for beginners:

• What is cryptocurrency? In general, it is a digital asset that uses a special data encryption system. The currency can be freely managed: sold on exchanges, exchanged, sent to other accounts, withdrawn to a regular card, or used to buy goods. In short, it is an alternative to traditional money but without direct influence from government agencies.
• The second most popular term is blockchain. In short, it is a sequence of continuous blocks, transactions. Each subsequent record is linked to the previous one and includes information about the transactions made.
• A token is issued based on cryptocurrency and relates to a specific project. It acts as securities in the world of digital technologies.
• A stablecoin is a digital asset (token) with a fixed value. Usually, for convenience, it is pegged to the dollar exchange rate. However, there are cases of price formation based on the value of an ounce of gold (XAUT).
• A digital wallet is a checking account for storing, using, receiving, or sending cryptocurrency. These can be hardware (flash drives), browser-based, or exchange-based.

Detailed information about cryptocurrencies and blockchains is provided on the portal https://wellcrypto.io/ru/cryptocurrencies/.

Features of using cryptocurrency:

The main goal of investing is to invest funds with the aim of subsequently withdrawing them at a favorable exchange rate. Unlike trading, the profit has a more long-term nature and is not tied to frequent fluctuations in the cryptocurrency price. The focus is on prospects.

Most digital assets have a market trend – price changes depend on demand, supply, and the overall situation. Trends of growth (as was long the case with Bitcoin) and decline, which can alternate, are identified. Forecasts may have a cyclical tendency (for example, the currency rate may change each year in a similar dynamic).

Cryptocurrencies are traded on exchanges. These are specialized portals for exchanging cryptocurrencies for users. The safest exchanges are those regulated by special government institutions (example - https://wellcrypto.io/ru/best-exchange/regulated/). Note that a commission may be charged for transactions.

In 2022, cryptocurrency is not just a trend but a full-fledged means for paying for goods and services. Some companies offer users not only virtual wallets but also more familiar physical cards for performing payments with digital assets. Also, when working abroad, some companies offer to pay salaries in cryptocurrency at a fixed rate.

But it is important to remember – investing is always a risky area. Before starting investments, it is worth thoroughly studying the current market situation. It is safest to carry out transactions on verified portals with many years of market experience and not to make reckless transactions without theoretical knowledge.