What are crypto-currencies?

Cryptocurrencies are digital or virtual currencies that use cryptography for security, making them difficult to counterfeit or double-spend. Unlike traditional currencies issued by governments (fiat currencies),
cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger enforced by a network of computers (nodes). Cryptocurrencies exist only in digital form and can be transferred instantly over the internet. They are not tied to any physical form, such as coins or notes. Cryptocurrencies are also borderless, allowing for global transactions without the need for currency conversion or intermediaries.

Cryptocurrencies are known for their price volatility. Factors such as market demand, regulatory news,
technological advancements, and macroeconomic trends can cause significant price fluctuations. This volatility presents both risks and opportunities for investors and traders, making cryptocurrencies a speculative asset class.

Many cryptocurrencies, like Bitcoin, have a fixed supply, meaning there is a maximum number of coins that can ever be created. This scarcity can drive value over time, as demand increases relative to the limited supply. Other cryptocurrencies may have different issuance models, with some allowing for inflationary supply.

Two of the most common crypto-currencies are ‘Bitcoin and Ethereum’. There are many others.

Crypto-currencies are one of the most volatile assets of this modern era. They are invested in by the portfolio managers who are managing ETFs with a focus on crypto-currencies for growth and income generation; experienced traders as speculators to make profit. Crypto-currencies are suitable for those investors who have a much higher risk-taking ability and aptitude.