Cryptocurrencies explained simply.

Cryptocurrencies offer several advantages compared to traditional financial systems. You can send money quickly and easily across borders without relying on intermediaries like banks. Additionally, they offer increased privacy and security through advanced encryption techniques. What's particularly important is that cryptocurrencies enable people without access to traditional banking services to participate in the financial system, thus promoting financial inclusion.

The foundation for cryptocurrencies is the revolutionary blockchain technology.

Simply put, the blockchain is like a digital notebook where all transactions are recorded. The blockchain is publicly accessible and verified by many computers in the network. Everyone can view the transactions in the blockchain, but the parties involved remain pseudonymous. This transparency builds trust and prevents anyone from tampering with the blockchain. In this article, blockchain technology is explained in detail.

Blockchain technology not only impacts cryptocurrencies but also many other areas. For example, it can help make supply chains more transparent or handle contracts without intermediaries. The possibilities are almost endless, and blockchain has the potential to revolutionize many industries. You can read more about it here.

You now know what cryptocurrencies are and how they work. Now let's look at the different types of currencies.

Bitcoin is the first and most well-known cryptocurrency. Since its introduction in 2009, it has gained a large following and paved the way for other cryptocurrencies. One of its core features is the limited total supply of Bitcoin. There will never be more than 21 million Bitcoins. This limitation makes Bitcoin scarce and more similar to the concept of gold than a traditional currency. That's why Bitcoin is often referred to as "digital gold." Another important aspect of Bitcoin is its decentralization and independence from governments and banks. This means that no one has control over Bitcoin, just like no one controls gold. Here you can learn more about Bitcoin.

In addition to Bitcoin, there are many other cryptocurrencies and projects, also known as altcoins. These offer various functions and features. Some focus on transaction speed, scalability, or innovative technologies like self-executing contracts. Well-known altcoins include Ethereum, Ripple, Litecoin, and Dogecoin. In this article, you'll learn more about altcoins.

If you want to buy a currency, there are various options available. It’s important to understand these options in order to make the right decision for you. Below, we will show you the available possibilities.

There are various methods to acquire cryptocurrencies. A popular option is purchasing through crypto exchanges (Cryptonow Trade®), where you can trade cryptos online. Another option is cryptocurrency ATMs, where you can directly buy and sell cryptocurrencies. Additionally, there are gift cards (Cryptonow Wallet®) that simplify the purchase of cryptocurrencies. Regardless of the method you choose, make sure to research the risks and opportunities before investing. Here you can read more about how to buy cryptocurrencies.

After purchasing cryptocurrencies, it’s important to store them securely to avoid losses or theft. Below, we will show you the methods available for safe storage.

To own or trade cryptocurrencies, you need a wallet—a digital wallet for cryptocurrencies where you can securely store and send your cryptos. There are different types of wallets, including custodial and non-custodial wallets. With custodial wallets, a crypto exchange or broker manages your cryptocurrencies. This is convenient because your coins are always available, but there is a risk that your cryptocurrencies could become a target for theft. With non-custodial wallets, you have full control over your cryptocurrencies. You are the “true” owner, and your coins are stored more securely. However, you are also responsible for keeping your access data secure, as losing it could result in losing access to your coins.

The choice of the right wallet depends on your individual situation. If you trade cryptocurrencies frequently and need regular access to your wallet, an online wallet might be the more suitable option. However, if you own a larger amount of cryptocurrencies and want to store them securely in the long term, we recommend the safest option: an offline wallet, such as the Cryptonow Wallet®. In this article, storage methods are explained in more detail.

Before investing in cryptocurrencies, it's also advisable to familiarize yourself with the opportunities and risks of the crypto world. Learn more about the potential benefits and dangers of trading and investing in cryptocurrencies below to make informed decisions.

Cryptocurrencies offer the possibility of high returns and independence from traditional currencies. Through diversification, they can represent a diverse investment option, while transactions are generally more cost-effective. They also enable participation in the digital future of money. However, it is important to be mindful of high price volatility and the risk of fraud, as cryptocurrencies are not regulated. The responsibility for secure storage lies with the users. In this article, you can learn more about five opportunities and five risks.

We hope this guide has provided you with a comprehensive insight into the world of cryptocurrencies. Remember, this is just the first step into a vast and ever-evolving field. Stay curious, keep learning, and explore the numerous possibilities cryptocurrencies have to offer.