The rise of cryptocurrency

Cryptocurrency or known as “crypto” is a digital or virtual currency that is secured by cryptography. It's operated by blockchain technology based on decentralized networks. Cryptocurrencies are not issued by centralized authority and the government has no control of the digital asset.

The digital currencies work underpinned by cryptographic systems, when the secure online payments are enabled without using third-party intermediaries. Crypto can be mined or purchased by cryptocurrency exchanges.

Cryptocurrencies work not only with one but multiple functions and specifications. For example, Bitcoin was the very first widely available digital currency in 2009 as it is still successful up to this day. There’s also new currencies in the crypto market such as Solana, Litecoin, Ethereum, Cardano and EOS. All the value invested in cryptocurrencies has reached over $2.1 trillion in 2021.

However there’s skepticism about crypto whether it is legitimate or not, since it is not backed by any entities and the government does not have any access to it. There would be a risk in daily transactions and trading. All of the transactions are difficult to keep track since the investors are all anonymous. It’s also popular for criminals to use crypto for their suspicious activities that are used for money laundering and illicit purchases.

There are only a few countries that accept the use of cryptocurrency but only as an asset such as El Salvador, Japan and the European Union.

A young investor, Raja Aidan Shah, started trading on crypto at 18 and already has six years of experience. He said “The reason why cryptocurrencies are getting more common is because since the lockdown in March 2020, everyone was getting more interested in doing cryptocurrency investments; since retail investors wanted to take a look and raise more assets.”

Since crypto is becoming more common newly investors started using it and are endorsing it as an investment or business for the future. People would usually purchase a few units and hope to see potential growth in the future . They have to be dedicated to buy and sell crypto to maximize the profit and revenue.

“My advice to future investors would be; do your own research and understand the technology that is being built on blockchains, not just only the cryptocurrency itself,.” said Aidan. said

“What I also noticed that many investors tried to make money quickly in this investing journey in cryptocurrency and it would not work in that way,.” he said.

Having a good planning and strategy would be a good chance to see investment increase more in the assets.