Cryptocurrency is a relatively new type of money used only electronically through the Internet.

Types of cryptocurrency

The first cryptocurrency was the bitcoin, known to most people. Then their various analogs were invented, so-called altcoins. For example, some of the first ones were Namecoin and Litecoin.

Their creators sought to make the new currency as secure and reliable as possible. Thus, cryptocurrencies are now divided into bitcoins, altcoins, and stablecoins. The latter combines the advantages of cryptocurrencies and fiat.

Cryptocurrencies can also be divided into the following types:

decentralized;

pseudo-decentralized;

cryptocurrency platforms;

Stablecoins.

Decentralized currencies do not depend on the state or any authorities; they are controlled only by the community and have no intermediaries. Pseudo-decentralized currencies are characterized by centralized coin issuance and the impossibility of mining. They also have the disadvantage of being able to block accounts.

What you should know before you start investing

Before you start learning about cryptocurrencies, you should know at least the basics of economics and the basic rules of market pricing .

Then you can begin to understand what cryptocurrencies exist, what their advantages are, and which one is right for you.

Before making any investments, you need to study the market  your domain name thoroughly so that you don't suffer losses that could have been avoided.

Also, it is worth remembering that there is no such thing as permanent growth. There are bound to be ups and downs, so the first setbacks are not a reason to give up.

It can be psychologically difficult to invest for beginners because the constant risks are very pressing, and it can be difficult not to panic. That's why you should also prepare for stress in advance.