Knowledge database

To become a good investor, knowledge is important. This applies not only to cryptocurrency, but to all investments in general. With the exception of CopyTrading, which you can find on this exchange , there are no shortcuts to goals.

In connection with cryptocurrency, it can be a good idea to create your own knowledge database.

The reason is that cryptocurrency is a very big topic with many different concepts, so such a card index will no doubt be of great help. At least eventually your knowledge base reaches a certain size.

In this article, we will take a closer look at some of the questions that belong in such a knowledge database. With that said, there is no final decision on what a knowledge base is. Your knowledge database should contain exactly what you need it to contain!
What is cryptocurrency?
One question that it is common for a knowledge database related to cryptocurrency to contain is, of course, the following question: What is cryptocurrency?

Cryptocurrency is a digital means of payment. In other words, it is a form of virtual money, which you can use for various transactions via the Internet.

For example, you can use cryptocurrency to pay for items you have ordered online. It can also be a transaction between you and another person, regardless of whether you know the person or not.

The latter is one of the aspects that distinguishes cryptocurrency from “traditional payment methods” to a very high degree. When using traditional payment methods, it is always the case that both the sender and the recipient know who the other party is.
How many types of cryptocurrency are there?
How many types of cryptocurrency there are is another question that is often asked in connection with cryptocurrency. In other words, this is a topic that many are curious about.

At the time of writing, there are around 1,500 types of cryptocurrency. However, it is important to keep in mind that cryptocurrency is a concept that is constantly growing, so even though the number is 1500 now, it is not necessarily the case that it is the same number 6 months or one year from now.

There are also some types of cryptocurrencies that are more popular than others. A classic example here is Bitcoin. It is the cryptocurrency that can definitely be considered as the most popular means of payment in this field.

But of course there are other types of cryptocurrency as well. A common name for these is Altcoins. This stands for “alternative coins”, and it simply means that they are an alternative to the popular cryptocurrency Bitcoin.
Where can you buy cryptocurrency?

It is also not a matter of course that everyone knows exactly where to buy cryptocurrency. If this is a description that suits you, then this is another question that belongs in your knowledge database.

Cryptocurrency can be bought on a crypto exchange. The only thing you need to get started with this process is to register as a user on one of the crypto exchanges available.

Some examples of such crypto exchanges are eToro and Binance .
Is cryptocurrency a good investment?
But is cryptocurrency really a good investment? This is a question that has a somewhat ambiguous answer. Investing in cryptocurrency can end well, but it can also end badly.

Cryptocurrency is often associated with high volatility. In practice, this means that the value of the cryptocurrency can both increase and decrease faster than you can pronounce the word «cryptocurrency».