5 Things You Need to Know About Crypto in 2024

If you’re even remotely interested in finance and technology, you’ve probably already come across the term cryptocurrency. Almost everyone is familiar with it. However, how do cryptocurrencies actually work isn’t exactly easy to understand.

This article provides a brief insight into cryptocurrencies so that you, as a potential investor, can make an informed decision. We won’t use the vocabulary of a seasoned pro, but rather that of a biased layman. After all, anyone can get into the cryptocurrency business today. Easily and safely. Let’s do it.

1. What Are Cryptocurrencies, and Why Were They Created?

Cryptocurrencies are digital currencies in electronic form, which are not protected by state supervision but by encryption. They are an alternative to current bank money. They work through a blockchain, a type of database that is not located in just one place but with each participant in the network that runs the cryptocurrency’s software (decentralisation increases security).

Cryptocurrencies are limited in quantity, globally available, and their price is not determined by any bank or corporation. Cryptocurrencies are simply free. This is also the main difference from conventional money, which is regulated by national banks.

Like other currencies, cryptocurrencies can be bought, exchanged, or sold and sent around the world quickly and without limit. But without the need for a bank or card! The system (yes, that’s the blockchain) ensures secure, transparent, yet pseudonymous transactions. Since there is no middleman, transactions are processed instantly (see Mining or owning cryptocurrencies), and for a minimal fee.

The first cryptocurrency to traded in 2009 was Bitcoin, currently the most well-known and widely used cryptocurrency in the world. It emerged at the time of the Great Financial Crisis. As it happens, the story behind the creation of Bitcoin is now legendary and just waiting to be made into a Hollywood movie. It was created by a programmer under the nickname Satoshi Nakamoto. To this day, his identity is unknown and there are many theories about him. If you’re interested in the detailed history of the first cryptocurrency, there’s plenty of mater

2. To Mine or to Own Cryptocurrencies? That’s the Question…

Mining can be thought of as cracking a cypher. The more powerful the computer, the faster we decode the cypher and get the reward in cryptocurrencies. Mining is nothing more than the process of verifying individual transactions on a network. You make your computing equipment available to process cryptocurrency transactions.

Why mining? What are we, miners?

Since cryptocurrencies are purely digital currencies, a powerful computer with parameters beyond most conventional computer setups is required to mine them. In the world of virtual currencies, the process of creating cryptocurrencies is called mining or crypto-mining. It is not the classic physical mining that we know from gold mines.

It is a term used to describe a specific transaction verification process where new cryptocurrency coins are controlled and produced in a predetermined amount over a specific period, regardless of the amount of crypto miners.

However, you don’t have to be a miner to profit from the growing trend of cryptocurrencies. All you have to do is buy a cryptocurrency and wait for its price to rise thanks to its growing popularity!

3. What Are the Biggest Benefits of Cryptocurrencies?

Cryptocurrencies have several advantages:

1. The first advantage that comes with cryptocurrencies is their abundance. Although most people think of Bitcoin in this context, Bitcoin is not the only digital currency. According to Coingecko, there are over 12 thousand active cryptocurrencies, and they are backed by ambitious and innovative individuals or entire teams. As for the most widespread ones, it is possible to pay with them in several places, not only online but also in regular shops or cafes.
2. Another advantage of cryptocurrencies is that they return control of money to its owner. No bank can block them, charge you enormous fees or, heaven forbid, restrict your ability to withdraw them.
3. Moreover, unlike conventional money issued and managed by central banks, the value of cryptocurrencies is determined by the market, without the systematic manipulation known as monetary policy.
4. Cryptocurrencies can be profitably invested in and thus provide a possible passive income. The first Slovak company that brings a smart and safe way to easily invest in cryptocurrencies is Fumbi. The reason for its creation was the increasingly opaque cryptocurrency market and its ever-growing number. Even for a pro, it’s hard to know your way around these days.
5. The success of cryptocurrencies is evidenced by the fact that the world’s largest companies, such as IBM or Facebook, are working on their application. Therefore, experts predict long-term growth in their value.

4. There Are Over 12 Thousand Cryptocurrencies in Active Use Around the World. Which Are the Popular Ones?

There are currently more than 12 thousand active cryptocurrencies on the market and their number is growing every day. The most popular cryptocurrency is still Bitcoin, which remains the market leader in all categories. Bitcoin has the highest price, the broadest application (you can also use it to pay for goods and services) and the highest security.

It is deliberately designed so that no one, including authors, interest groups or governments, can artificially influence and counterfeit the cryptocurrency. And simultaneously, make it impossible to change Bitcoin account holders, control the flow of money, or artificially manage inflation. Litecoin, which has lower transaction fees, or Ethereum, which makes it possible to create decentralised applications or other tokens, also hold their prominent place.

The value of cryptocurrencies is determined by supply and demand in the global market, and currently, most of the funds in the market are concentrated mainly in the top 50 cryptocurrencies. 

5. Why and When Is It Worth Investing in Cryptocurrencies?

Digital currencies have been one of the most profitable investment vehicles over the past few years. Some people buy cryptocurrencies as a long-term investment, others invest in cryptocurrencies in short time intervals.

When investing, especially for beginners, it is best to put yourself in the hands of experts who have an overview of the crypto market and the exchange rate of each cryptocurrency. It is best to invest money in multiple digital currencies that have the potential to grow in value. This is the philosophy of Fumbi, which aims to make cryptocurrency investing accessible to less experienced or busy people.

Investors who choose to put their money into Fumbi don’t have to worry about which cryptocurrencies to invest in, which online exchanges to buy them on, or how to store them safely. The Fumbi algorithm takes care of everything, spreading the investment across multiple cryptocurrencies so that its value follows the overall market movement.

Start investing safely in cryptocurrencies now.

What to Invest In?

Fumbi Index Portfolio – Buy a whole bundle of proven cryptocurrencies as soon as possible through our Fumbi Index Portfolio product and take advantage of today’s growth. With the Fumbi Index Portfolio, you’ll get over 20 cryptocurrencies with a single deposit, and your investment will be managed by our Fumbi Algorithm, which tracks the growth of the entire market. In 2023, the portfolio has achieved a total appreciation of up to 122.75%.

Advanced Portfolios – In this product, you will find a wide range (over 60 top) of new and exotic cryptocurrencies and new portfolios that you can either build yourself or use pre-made templates created by our specialists.

At Fumbi you can buy and invest from as little as €50.