Cryptocurrency remains a hot topic for finance and technology pundits, but many in the general population do not feel confident enough in their knowledge of cryptos to become investors themselves. Clear and useful information about cryptocurrencies is not exactly easy to find. As such, potential investors can feel unprepared to commit their resources—even when the markets are ripe for it. However, the facts about cryptocurrency are available. You just need to know where to look.
Let’s start with the basics: what is cryptocurrency, and why is it important? For those who are not yet aware, the term “cryptocurrency” refers to numerous forms of digital money that function independently of a centralized bank. Most cryptos (or tokens) are based on blockchain technology, which allows transactions to be tracked and verified by various copies spread out across a network of seperate devices. The transactions are thusly encrypted… hence, cryptocurrency.
If that’s kind of confusing, just remember this: cryptocurrencies use advanced technology to make themselves more secure than other forms of money. They also allow users a certain degree of anonymity, depending on the token in question. It is also worth noting that many different cryptocurrencies exist. In fact, there are over 1,037 and each one comes with its own specific benefits (and risks).
Because there is so much variety when it comes to cryptocurrencies, it can be difficult to know how different tokens stack up next to one another. Fortunately, you don’t need to look up the specs for every token out there—because our friends at Uphold have already done that. Uphold is a digital wallet service that allows users to trade in numerous standard and digital currencies, as well as certain precious metals. They’ve provided the following infographic to help potential crypto investors understand their options. Take a look at the information below, and use it to decide which crypto is right for you: