It's been a long 15 years since, until now anonymous, Satoshi Nakamoto announced his manifesto. The declaration was a protest against the broken banking system, and its eeect was the emergence of the first application of blockchain technology to receive such a large following. We are, of course, talking about bitcoin, which has not been off the lips of financial market analysts for years and is still, despite the passage of time, the cryptocurrency with the largest market capitalization.
To invest wisely in cryptocurrencies, you must first find out what they are. Hundreds of digital currencies have been created over the years. Bitcoin is still the most popular and simplest in its construction. But what is it? Let's first decipher the name of the technology that underlies it. Blockchain technology means block chain technology. As in the standard chain, also in the case of bitcoin it consists of thousands of inextricably linked links, and these links are blocks that constitute sets of settlement data. To put it simply, a blockchain is a database whose each update follows directly from the previous version. It is customary to record only transactions on the bitcoin blockchain - constituting proof of sending funds between the addresses of network users.
Create an account on the Egera cryptocurrency exchange and buy your first cryptocurrencies within 5 minutes!
Decentralization is at the heart of most applications of blockchain technology. Unlike the standard financial system, cryptocurrencies are based on a network that does not have a centrally controlled entity. This gives a huge advantage over the standard system and underlies the security of the blockchain network. Thanks to decentralization, it is practically impossible to interfere with historical records on the blockchain or to disable the network. As long as at least one node of the network is operational, it will function uninterrupted.
We already know what bitcoin is. Now you may be asking yourself why there are so many cryptocurrencies? The answer to this is quite complicated. The first cryptocurrencies that appeared on the market after Bitcoin were based on the desire to improve the technology presented by Satoshi Nakamoto. This is how, among others, Litecoin. Its creator noted that due to technological limitations, bitcoin will not be able to effectively account for the growing interest of its users. Litecoin became a fork of Bitcoin - offering greater efficiency and lower transaction costs. After Litecoin, it was time for the Ethereum era. This cryptocurrency, created by Vitalik Buterin, became a real hit. This was all due to the fact that it did not focus only on the settlement of transactions, but also enabled the creation of smart contracts. The idea introduced by Ethereum has been improved many times by subsequent projects. Currently, there are dozens of cryptocurrencies with different approaches to functionality. There are many unique projects on the market, but a trained eye will also notice those that are created only to raise money from the market.
A smartcontract is a form of contract saved on a given network. It is concluded between the participants, and its implementation requires the existence of specific and defined conditions in advance. Importantly, thanks to the specificity of the blockchain network, no third party is needed to conclude a smart contract, and all the rules are determined by the source code underlying a given contract.
The first tokens that achieved wide publicity were created on the Ethereum blockchain. Thanks to its structure, this cryptocurrency allows the creation of contracts. To put it simply, tokens are a unit of an asset based on a smart contract. In other words, a token is a “cryptocurrency” based on an external blockchain network. For a long time, tokens have been only a transitional stage until a given project launches its own network based on blockchain or other technology.
The last issue that probably caught your attention is the so-called NFT tokens. NFT is an abbreviation for non-fungible tokens. Put simply, unlike tokens such as stable-coins, each NFT is unique. Artists and world brands took advantage of this perfectly. Using the blockchain network, they published their unique works in the online world, and the previous possession of Stuka's works in the real world has transferred to the virtual world, where you can, for example, be the only one to have the image saved on your wallet.
Unlike the traditional financial market, in the world of cryptocurrencies it is commonly said that as a market participant, you are your own bank. It may sound incomprehensible, but it is actually very simple. In the world of cryptocurrencies, you have complete freedom to dispose of your funds, but at the same time, all risk and responsibility rests solely on your shoulders.
To manage your cryptocurrencies, you must have a wallet that will allow you to create your own place in the network, the so-called cryptocurrency address. There are plenty of wallets. Each of them has its advantages and disadvantages. The choice, as you can guess, is only yours. If you care about security, turn your attention to physical wallets or paperwallets. If you use cryptocurrencies on a daily basis as a programmer, you will certainly be interested in browser plug-ins such as MetaMask. If you use cryptocurrencies frequently, check out mobile wallets you can install on your phone. However, if your life is about active investing - choose a wallet within the cryptocurrency exchange, which will allow you to avoid the costs of constantly transferring funds between an external wallet and the exchange.
Investing in cryptocurrencies is essentially the same as investing in any other asset. Below, you will learn the suggested rules that will allow you to shape your portfolio in a planned way:
EGERA is not only a cryptocurrency exchange, it is also the first QuickSwap overlay, enabling quick and convenient purchase of cryptocurrencies including bitcoin, ethereum, litecoin, XRP and others in a few clicks.
What distinguishes us is a professional and helpful customer support department working in Polish. Thanks to this, no technical question will be left unanswered and you will be able to feel safe.
The best way to buy cryptocurrencies is egera.com. On our platform you can buy not only bitcoin, but also other cryptocurrencies such as Litecoin, Ethereum or Dogecoin. Importantly, we support BLIK payments and bank account deposits 24/7.
Once you have an account on our platform and have verified it, all you need to do is choose the exchange method that is convenient for you. We provide you with a quick exchange module and an exchange in Polish.
The quick exchange module allows you to buy or sell cryptocurrency with just a few clicks. Thanks to it, all you need to do is select the source and target currencies and enter the exchange amount, and the rest will happen by itself. Our exchange engine will independently select the most advantageous offers and fulfill your request. Interestingly, fast exchange also works through several markets - that's why you can exchange, for example, bitcoin for ethereum.
For advanced traders or people who like to have full control over their transactions, we have prepared a stock exchange module in Polish. Thanks to it, you can independently set the exchange rate on the selected market. You can choose from a number of markets based on PLNe, including: the bitcoin, ethereum, litecoin, XRP, dogecoin market, but also exclusive markets such as BigShortBet$ and AdShares.
There are many portfolio construction strategies. First of all, you should determine your investment horizon. A portfolio focused on years is completely different from a portfolio focused on a bull market. The experience of many cryptocurrency owners shows that altcoins are the best during a bull market, while it is worth waiting out a bear market based on currencies with the largest capitalization, such as bitcoin or ethereum. Although they lose a lot on declines, the loss rarely exceeds 80%. In the case of niche altcoins, on which previous bull markets were built, the loss often reached 99 percent or more, and many of them, such as Luna, are no longer in the collective consciousness.
If you value stable, long-term investments, it is worth considering Graham's 80:20 portfolio. Unlike the traditional market, 80% should consist of bitcoin stocks instead of shares, and the remaining 20% should consist of niche altcoins and products of creators' imagination such as NFTs. While such a portfolio won't give you exposure to the biggest gains, it should protect you against losing most of your portfolio's value. Importantly, the currencies with the largest capitalization, such as bitcoin or ethereum, have survived more than one bear market and still remain at the top of the popularity ranking. The situation has so far been completely different in the case of altcoins - which disappeared from the top 100 most important cryptocurrencies as quickly as they appeared on this list.
Nowadays, you can earn money on cryptocurrencies not only from the increase in their popularity. There are many ways to make money on crypto, the most popular of which are staking and inheritance.
Staking is a very general term for entrusting your cryptocurrencies to a third party for a specific period of time in exchange for a specific benefit. Although some platforms have names such as liquidity pool or farming, for you the mechanism is the same - you transfer your cryptocurrencies to a third person or institution. Staking allows you to earn even more than 20% per year. However, like any other investment, it involves risk. When putting funds into staking, pay attention to the regulations of a given service. Staking in a blockchain, such as ethereum, in which the staked cryptocurrencies stabilize the price, is completely different, and a liquidity pool used to drive traffic on the market of a given cryptocurrency is completely different.
They say that when a taxi driver asks you if it's a good time to get into Bitcoin, it's the perfect time to exit the market with a profit. At this point, the market is also full of short-term speculators. What does it mean? What is a short position? Imagine that you have a feeling that the market is about to collapse into a bear market. The short game involves purchasing a given asset from another market participant and immediately selling it to a third party. Why do this? When the market is red and you have a cash position, all you can do is wait for a convenient moment to buy the asset cheaper. Then all you have to do is return this depreciated asset to the party from which you borrowed it with the interest due to it. The difference in the rate that you still have in cash is your net profit.
Table of Contents
