What is Crypto? | INN


Cryptocurrencies and blockchain technology are making headlines as the digital revolution continues to reshape various industries, such as finance, gaming and insurance.

Bitstamp’s Crypto Pulse 2022 report reveals an “overwhelming belief in the potential of cryptography” on the part of investors.

“Our first Crypto Pulse report finds that there is a simple equation for its adoption: when investors know more, they trust it more, and therefore adopt it more,” explains Julian Sawyer, CEO of Bitstamp, in the report.


Still, newcomers to this emerging technology may wonder, “What is cryptography?” Here, the Investing News Network (INN) helps investors learn more about cryptocurrencies, including what cryptocurrency investment opportunities are available today and what the future holds for digital currencies.

What is crypto? Get to know digital currencies

Investopedia defines the term cryptocurrency as “a digital or virtual currency that is protected by cryptography, which makes counterfeiting or double spending almost impossible.” Cryptocurrencies are not physically preserved like gold, nor are they printed or minted in central banks like the traditional forms of currency, i.e. banknotes and paper coins.

Cryptocurrencies are “digitally extracted” using hardware and software programs that use blockchain technology over a network of powerful computers called nodes. These nodes generate cryptocurrencies while maintaining a transparent and verifiable transaction log. Each currency produced is transferable between cryptographic accounts and can therefore be used to pay for goods and services.

Bitcoin, the first cryptocurrency on the scene, was created by software developer Satoshi Nakamoto in 2009. There is no endless supply of bitcoins; by contrast, the total number of shabby tokens on the bitcoin network is 21 million. This limited supply of bitcoins makes it more valuable and therefore more attractive to investors.

If you’re interested in learning more about bitcoin mining, check out the INN guide “What is bitcoin mining?”

What is crypto? How to invest

Cryptocurrencies

Bitcoin may be the first cryptocurrency, but more than a decade after its inception it is far from the only digital currency available. Other popular options include bitcoin cash, dashcoin, Ethereum, litecoin and ripple.

Investors interested in the cryptocurrency space can buy or sell individual cryptocurrencies or even portions of cryptocurrencies, directly from numerous cryptocurrency exchanges and peer-to-peer cryptocurrency trading applications. These include Coinbase (NASDAQ: COIN), CoinSmart Financial (NEO: SMRT), BlockFi, Binance and Gemini.

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

Cryptographic actions

Cryptocurrency mining stocks offer another great entry point into this market, providing access to those who don’t really want to own a cryptocurrency. Cryptocurrency mining companies use superpowered computers to extract new cryptocurrencies. The cryptocurrency mining market is expected to grow at a compound annual growth rate of 28.5 percent from 2021 to nearly $ 5.3 billion in 2028.

Some of the largest cryptographic mining stocks are Marathon Digital Holdings (NASDAQ: MARA), Riot Blockchain (NASDAQ: RIOT), Hut 8 Mining (TSXV: HUT, NASDAQ: HUT) and HIVE Blockchain (TSXV: HIVE, NASDAQ: HIVE).

Opportunities in cryptographic actions also include cryptographic hardware companies such as China-based Canaan (NASDAQ: CAN), a pioneer in ASIC-powered bitcoin mining machines and one of the world’s largest cryptographic mining hardware vendors. In addition, the gaming industry is also adopting blockchain technology through cryptographic games, which allow players to earn cryptocurrencies while playing digital games. One of the most notable cryptographic gaming actions is Axie Infinity (NASDAQ: AXS).

Cryptographic funds, trusts and ETFs

Cryptographic funds and cryptographic trusts represent an emerging way to invest in the cryptographic market. The following is a selection of cryptocurrency 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, which in turn tracks the 10 largest cryptocurrencies.
  • Bitcoin Fund (TSX: QBTC) – The Bitcoin Fund is operated by 3iQ, the first in Canada to offer cryptocurrency exposure to accredited investors. This closed-end fund is designed to invest solely in bitcoins.
  • Ninepoint Bitcoin Trust (TSX: BITC, TSX: BITC.U) – This low-cost trust trades with both US and Canadian funds. Investors can buy shares of the trust, which closely follows the underlying asset.
  • Grayscale Ethereum Classic Trust (OTCQX: ETCG) – This trust tracks the price of the classic ethereum token. Investors can buy and sell stocks through traditional brokerage accounts.

Cryptocurrency exchange funds (ETFs) are another investment vehicle through which investors can gain exposure to the growing demand for cryptocurrencies. For more information on cryptocurrency ETFs, such as Purpose Bitcoin ETF (TSX: BTCC), CI Galaxy Ethereum ETF (TSX: ETHX.U) and Evolve Cryptocurrencies ETF (TSX: ETC.U), read the INN guide to investing in cryptocurrency ETFs.

What is crypto? The future of the industry

With so much volatility in global markets, it is difficult to make projections about the cryptographic space.

However, Bitstamp notes that one of the most significant results of the survey highlighted in its Crypto Pulse report is that digital assets are expected to outperform traditional investments. The exchange of cryptocurrencies polled 5,502 institutional investment decision makers and 23,113 retail investors in 23 countries. The results show that most talkers believe this will happen in the next decade.

In an interview in early 2022, Justin Hartzman, CEO and co-founder of CoinSmart Financial, told INN that he believes the cryptocurrency market can be rewarding for investors who adopt a long-term strategy.

“There may be some bumps along the way, but the crypto market tends to reward investors who remain confident, and we hope that this trend will continue in the future as the user base of the digital economy grows and new cases continue to be built. of use “. said Hartzman.

Don’t forget to follow us @INN_Technology for real-time updates!

Securities Disclosure: I, Melissa Pistilli, have no direct investment in any of the companies mentioned in this article.

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