Cryptocurrencies arouse great emotions and arouse ideas of great profits. Some associate it with making money online or with mysterious money that doesn't exist, and yet the naive buy it with hard-earned cash. Contrary to the opinion of laymen, cryptocurrencies are not a machine for secretly making money on the internet. Rather, it is a revolution in the world of Finance and banking, a new economy that will soon affect everyone.
Cryptocurrencies do not have a physical form, but they have a certain value, so they can be called virtual or digital money. This means that if a seller accepts payment in a given cryptocurrency, then you can use it to pay for a good or service just as legally as with gold, euros, dollars or other fiat currency. Moreover, if, for example, a friend gives you his wallet address of a given cryptocurrency, then in an easy way, bypassing the bank and other intermediaries, you can transfer to him any number of its units. In this way, you can easily settle even common expenses.
However, the fact is that today few people use cryptocurrencies for their payment function. Most people, rightly so, see in them financial instruments that are subject to current valuation, are characterized by high investment risk, but at the same time they give a chance to earn really spectacular profits. They buy and sell mainly on cryptocurrency exchanges, which in many respects resemble traditional stock, bond, currency or commodity exchanges.
As for the profit potential, it is enough to mention that bitcoin initially cost only a few cents, but already 8 years later its course reached $ 20,000, and after another 4 years to almost $ 65,000 (the peak of April 2021). However, we must not forget that in the meantime it has experienced many powerful, often dynamic, price drops. Buying cryptocurrency at the peak before the crash, it was possible in a few weeks, and sometimes even days, to lose 70-80% of the value of the portfolio.
