On a first-name basis with cryptocurrency or how to start investing

Every year cryptocurrency becomes more and more integrated into people's lives, so it is likely that its value will grow. In this story, we tell why investors should pay attention to the cryptocurrency market and how to do it.

Money of the future

The world is going digital. And while countries are just working on their electronic versions of currencies, digital assets have long been in circulation. With cryptocurrency, you can go to the movies, buy clothes or even accessories for a Tesla car. It is also one of the most profitable (and risky) tools for investment.

For example, the world's main cryptocurrency, bitcoin, is now worth more than $40,000, according to CoinMarketCap. And just 12 years ago, few people believed in bitcoin. A striking example is the American Laszlo Hejnica, who bought two pizzas for 10 thousand bitcoins. At that time it was $40 - $50, but at today's rate - $400 million.

10 cryptocurrencies by market capitalization in 2022

As of Feb. 21, 2022, the value in U.S. dollars :

Source: Yahoo.Finance

Even memes are becoming profitable cryptocurrencies. According to Visual Capitalist, billionaire Ilon Musk's favorite cryptocurrency Dogecoin, which he frequently posts tweets about, jumped 3,546% in 2021.

Now it's not just ordinary investors and billionaires who believe in cryptocurrency, but companies and government agencies. In many countries, you can buy things and pay for services with bitcoins or other cryptocurrencies. And El Salvador has adopted bitcoin as the official means of payment. Ukraine is not standing aside either:

In 2021, Ukraine ranked fourth among countries to use cryptocurrencies, according to a Chainalysis study.

This year, Ukraine finally approved the legalization of the cryptocurrency market.

In 2023, Ukraine plans to launch its own digital hryvnia.

How to get into the world of cryptocurrencies

Today, the capitalization of the global cryptocurrency market reaches $1.87 trillion. And by the end of 2022, it could reach $9.6 trillion, according to a forecast by Fundstrat Global Advisors. Therefore, the cryptocurrency market has great potential, which can be used for their own purposes.

Ukrainians have access to different crypto exchanges. Specialists of one of them - Bybit - told in the commentary what opportunities investors and traders have by choosing cryptocurrency as a tool.

Photo: Unsplash

Both beginners and professionals can trade on the crypto exchange

On Bybit's platform, traders have access to derivatives (futures) and spot markets, as well as access to staking services and even an NFT marketplace.

Spot

The spot market is when a trader buys a particular cryptocurrency and becomes its owner. More than 230 trading pairs are available on the platform: bitcoin, Dogecoin, Ethereum, Polkadot, BitRewards, XRP and others. These pairs are secured by Tether, a stackcoin whose price is pegged to the dollar. There are also pairs backed by bitcoin. These are Ethereum and XRP.

Derivatives

A derivative market is when a trader buys a contract with an agreement to buy or sell a certain cryptocurrency in the future. Bybit's derivative lineup includes perpetual inverse, linear perpetual contracts, and inverse futures.

Stacking

Stacking and DeFi mining services are also available on the platform. You can choose the option that suits you best:

Flexible Stacking. This is a great way to get a steady extra income on your long-term investment in cryptocurrency. Roughly speaking, it's like a deposit, only instead of currency, it's cryptocurrency, and instead of a bank, it's a crypto exchange. This service applies to low-risk cryptocurrencies such as Bitcoin, Ethereum or USD Coin. In addition, you can close the so-called "deposit" at any time.

Let's look at an example. You have $20,000 that you have exchanged for Tether (USDT). And you decide to take advantage of flexible staking with an annual interest rate of 9% (APY). Consequently, every day 5 USDT will fall to your Bybit account.

Dual-mining. This is a risky way, offering up to 400% annual percentage rate (APY). Its essence is that the interest rate floats and the income asset can change. You can even open such an agreement for 1 day.

DeFi Mining. Traders can earn income from pooled capital. In simple words, a platform user adds their assets to a stack and in return receives Curve management tokens (CRV), which they can then exchange for other cryptocurrencies.

Pool. Here you can add tokens to Staking and get new tokens for free.

Note. Cryptocurrency marketplace as well as staking services carry financial risks.

NFT Marketplace.

Outbound Internet code, cryptopunks, memes, and digital paintings. These are just a few examples of NFTs that have sold for a lot of money. NFT is the ownership of a particular object in the digital world (a song, a picture, a skin in a game, etc.). Some collect entire collections of NFTs, while others see this market as another field for investment.

In 2022 Bybit launched its NFT marketplace. You can post, buy and sell NFT items on it.

What is known about the Bybit crypto exchange.

It is a professional trading platform with ultra-fast trading algorithms and 24/7 support. The Bybit platform has been in operation since March 2018. It is one of the fastest growing cryptocurrency exchanges in the world. In fact, Bybit is trusted by more than five million users.

Good luck to you readers read.cash

16.04.2022.

@Belozoriana