What is Crypto? What is electronic money? How to invest effectively? These are the questions investors care about. The Crypto market is growing and being attended by many investors. So in this article, let's learn a few things about Crypto.

 

  1. What is Crypto?

    Crypto (cryptocurrency) in Vietnamese is virtual money. Crypto also has many other names, such as electronic money or cryptocurrencies, digital money, and even cryptocurrencies, etc.

    Crypto exists as a cryptocurrency, Issued by Blockchain projects and used as a means of the transaction on Blockchain platforms. It can be stored and transacted through apps, desktop software, smartphones, or industry-specific digital wallets.

    The most outstanding feature of Crypto virtual currency is that anyone can be able to create this currency. However, the value of a Crypto coin varies through how widely it is accepted and used by the community. This is the biggest difference from fiat money being issued, priced, and controlled by governments.

 

  1. What is a crypto exchange?

    A cryptocurrency exchange is simply an environment where digital currency is exchanged through Blockchain platforms. After being successfully mined, miners will find a way to publish the number of coins they own to the market. Investors not directly involved in the mining process will mainly have to trade cryptocurrencies on crypto exchanges.

    In the past few years, the crypto exchange has been developing at a breakneck pace. According to a report by the ranking website Coinmarketcap, the number of exchanges providing digital currency exchange services can reach nearly 400 exchanges.

 

  1. Pros and cons when investing in crypto

    Advantages of investing in crypto

    - Fairness: Users can easily buy and sell virtual currencies directly without going through any intermediaries, causing unfairness and difficulty in trading.

    - Bring convenience: Users only need a smartphone, laptop, or computer with an internet connection to be able to participate at any time, anywhere.

    - Fast, convenient, and low-cost transactions: When using crypto, investors can transfer money from one country to another quickly and reasonably.

    - Crypto investment also ensures high safety and security when making transactions.

    Cons of crypto investment

    - In some countries, cryptocurrency is still not accepted by the community, not in circulation or widely known.

    - Large and unusual price fluctuations can change from hour to minute, requiring investors to update and monitor continuously.

    - Cryptocurrency investment users and investors need sufficient crypto-related knowledge and time to learn.

  1. Crypto classification

    In the current virtual currency market, Crypto will be divided into two main types:

    - Tokens

    The token is a virtual currency issued based on the operation of projects built from a specific Blockchain. Most of the tokens on the market today use Ethereum's blockchain. Others can develop based on Bitcoin, Solana or Avalanche, etc.

    - Coins

    The coin is a currency developed on the blockchain platform and is completely independent. The coin can completely solve problems related to payment activities, finance, applications, and security.

 

  1. How to invest in crypto effectively

    - Investors need to filter information carefully.

    - Investors also need to learn and continuously improve their financial knowledge and experience.

    - You need to have faith in yourself with every decision you make.

    - Always be ready for all possible bad situations to analyze to bring yourself to a new level more accurately.