{"id":7672,"date":"2022-11-03T15:34:31","date_gmt":"2022-11-03T08:34:31","guid":{"rendered":"https:\/\/bap-software.net\/?post_type=knowledge&#038;p=7672"},"modified":"2024-12-13T11:27:26","modified_gmt":"2024-12-13T04:27:26","slug":"what-is-crypto","status":"publish","type":"knowledge","link":"https:\/\/bap-software.net\/en\/knowledge\/what-is-crypto\/","title":{"rendered":"What is Crypto? Overview of crypto knowledge for newbies"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The cryptocurrency market has been on the rise in recent years and attracts a lot of investors. The term crypto has become popular but not everyone understands \u201cWhat is Crypto?\u201d. If you are a newbie and want to learn about crypto. This article is for you!<\/span><\/p>\n<h2><b>I. What is crypto?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Crypto or Cryptocurrency is simply understood as virtual money, electronic money, or digital money. Crypto is built on <\/span><a href=\"https:\/\/bap-software.net\/en\/knowledge\/how-does-blockchain-work\/\"><span style=\"font-weight: 400;\">blockchain technology<\/span><\/a><span style=\"font-weight: 400;\">. It is used as a medium of transactions that take place on blockchain platforms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike the US Dollar, Euro, or other fiat currencies, there is no central authority that manages and maintains the value of cryptocurrencies. The distinguishing feature of crypto is that anyone can create this currency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2008. It is also the most popular cryptocurrency even though there are over 19,000 different cryptocurrencies in circulation.<\/span><\/p>\n<div id=\"attachment_7674\" style=\"width: 860px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7674\" class=\"wp-image-7674 size-full\" src=\"https:\/\/cdn.bap-software.net\/2022\/11\/what-is-crypto.jpg\" alt=\"Illustrations of cryptocurrencies\" width=\"850\" height=\"478\" \/><p id=\"caption-attachment-7674\" class=\"wp-caption-text\">Illustrations of cryptocurrencies &#8211; Image: mrwhosetheboss<\/p><\/div>\n<h2><b>II. Advantages and Disadvantages<\/b><\/h2>\n<p><strong>Advantages<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Safety and security:<\/span><\/i><span style=\"font-weight: 400;\"> Customer information is kept secure<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Easy and fast transactions:<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Anyone can send and receive various cryptocurrencies easily through an app on a computer or smartphone. Besides, transactions whether domestic or international are very fast, in just a few seconds to a few minutes.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Low transaction fees:<\/span><\/i><span style=\"font-weight: 400;\"> the transaction fees that users pay are very low for low transaction levels<\/span><\/li>\n<\/ul>\n\t\t\t<div class=\"related_one_post\">\n\t\t\t\t<p class=\"title_label\"> Related Article <\/p>\n\t\t\t\t<div class=\"one_post_contents\">\n\t\t\t\t\t<div class=\"thumb\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.bap-software.net\/2022\/11\/metaverse-crypto-projects.jpg\" alt=\"Top 5 outstanding metaverse crypto projects in 2023\" \/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t<h6 class=\"title_one_post\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/top-outstanding-metaverse-crypto-projects\/\" title=\"Top 5 outstanding metaverse crypto projects in 2023\"> Top 5 outstanding metaverse crypto projects in 2023 <\/a>\n\t\t\t\t\t\t<\/h6>\n\t\t\t\t\t\t<div class=\"read_more\">\n\t\t\t\t\t\t\t<p class=\"read_more_text\">\n\t\t\t\t\t\t\t\tThe concept of the \u201cmetaverse\u201d may be quite new to many people. However, there are many metaverse projects out there that can create a life-changing opportunity. Metaverse and crypto are coming to...\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t<p class=\"link_read_more\">\n\t\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/top-outstanding-metaverse-crypto-projects\/\"> Read more\t\t\t\t\t\t\t\t\t<i class=\"fa fa-angle-right\"><\/i>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Inflation hedge:<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are only 21 million Bitcoins issued in the world and no more can be created due to the binding nature of the blockchain. Cryptocurrencies with a limited supply like Bitcoin are seen as good anti-inflation tools. It won&#8217;t depreciate like cash when too much money is printed<\/span><\/p>\n<div id=\"attachment_7676\" style=\"width: 860px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7676\" class=\"wp-image-7676 size-full\" src=\"https:\/\/cdn.bap-software.net\/2022\/11\/pros-and-cons-Cryptocurrency.jpg\" alt=\"Cryptocurrency Pros and Cons\" width=\"850\" height=\"435\" \/><p id=\"caption-attachment-7676\" class=\"wp-caption-text\">Cryptocurrency Pros and Cons &#8211; Image: honestproscons.com<\/p><\/div>\n<p><strong>Disadvantages<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Strong Price Volatility: <\/span><\/i><span style=\"font-weight: 400;\">Cryptocurrency prices fluctuate wildly. Therefore, the currency can drop sharply and pose a risk to investors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Theft Risks:<\/span><\/i><span style=\"font-weight: 400;\"> Cryptocurrency exchanges are vulnerable to cyberattacks that can cause your investment to be lost forever<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Unrecognized:<\/span><\/i><span style=\"font-weight: 400;\"> Cryptocurrencies are not yet widely accepted and circulated by law in many countries<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Less regulation:<\/span><\/i><span style=\"font-weight: 400;\"> Cryptocurrencies are not controlled by governments and central banks. Therefore, in the event that the cryptocurrency platforms are hacked, there will be no regulatory mechanism to protect investors<\/span><\/li>\n<\/ul>\n\t\t\t<div class=\"related_one_post\">\n\t\t\t\t<p class=\"title_label\"> Related Article <\/p>\n\t\t\t\t<div class=\"one_post_contents\">\n\t\t\t\t\t<div class=\"thumb\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.bap-software.net\/2022\/10\/future-of-blockchain-in-baking.jpg\" alt=\"What does the future of Blockchain look like? 5 predictions about upcoming trends\" \/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t<h6 class=\"title_one_post\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/future-of-blockchain\/\" title=\"What does the future of Blockchain look like? 5 predictions about upcoming trends\"> What does the future of Blockchain look like? 5 predictions about upcoming trends <\/a>\n\t\t\t\t\t\t<\/h6>\n\t\t\t\t\t\t<div class=\"read_more\">\n\t\t\t\t\t\t\t<p class=\"read_more_text\">\n\t\t\t\t\t\t\t\tWhat is Blockchain? Many people know it as a technology that underpins Bitcoin. But blockchain won't just stop at Bitcoin or cryptocurrencies. This technology is expected to be applied more widely in...\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t<p class=\"link_read_more\">\n\t\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/future-of-blockchain\/\"> Read more\t\t\t\t\t\t\t\t\t<i class=\"fa fa-angle-right\"><\/i>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\n<h2><b>III. Crypto classification<\/b><\/h2>\n<h3><strong>1. Coin<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Coin is a cryptocurrency developed on a separate and independent blockchain platform. Each blockchain has a unique coin. It is capable of solving problems related to finance, payment, and information security,&#8230;<\/span><\/p>\n<div id=\"attachment_7673\" style=\"width: 860px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7673\" class=\"wp-image-7673 size-full\" src=\"https:\/\/cdn.bap-software.net\/2022\/11\/coin-vs-token.jpg\" alt=\"Coin and Token\" width=\"850\" height=\"478\" \/><p id=\"caption-attachment-7673\" class=\"wp-caption-text\">Coin and Token illustration &#8211; Image: cuitandokter.com<\/p><\/div>\n<h3><strong>2. Token<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A token is a cryptocurrency issued on the blockchain. All tokens can be considered altcoins, but they are distinguished by operating on other blockchains and do not have their own blockchain.<\/span><\/p>\n<h3><strong>3. Bitcoin<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Bitcoin is the cryptocurrency that laid the foundation for the development of the crypto market. It ranks first among cryptocurrencies by market capitalization.<\/span><\/p>\n\t\t\t<div class=\"related_one_post\">\n\t\t\t\t<p class=\"title_label\"> Related Article <\/p>\n\t\t\t\t<div class=\"one_post_contents\">\n\t\t\t\t\t<div class=\"thumb\">\n\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.bap-software.net\/2021\/06\/what-is-defi.jpg\" alt=\"What is DeFi? Potential and risks of decentralized finance\" \/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"desc\">\n\t\t\t\t\t\t<h6 class=\"title_one_post\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/defi-finance\/\" title=\"What is DeFi? Potential and risks of decentralized finance\"> What is DeFi? Potential and risks of decentralized finance <\/a>\n\t\t\t\t\t\t<\/h6>\n\t\t\t\t\t\t<div class=\"read_more\">\n\t\t\t\t\t\t\t<p class=\"read_more_text\">\n\t\t\t\t\t\t\t\t1. DeFi Finance- What is Decentralized Finance? Defi is short for Decentralized Finance. DeFi is the latest term based on Blockchain and Cryptocurrency. Therefore, DeFi is different from CeFi. 1.1. Fe...\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\t<p class=\"link_read_more\">\n\t\t\t\t\t\t\t\t<a href=\"https:\/\/bap-software.net\/en\/knowledge\/defi-finance\/\"> Read more\t\t\t\t\t\t\t\t\t<i class=\"fa fa-angle-right\"><\/i>\n\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\n<h3><strong>4. Altcoin<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A compound word for Alternative and Coin, Altcoin refers to all other cryptocurrencies except Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ethereum, Tether, Litecoin, &#8230; are examples of popular altcoins today.<\/span><\/p>\n<div id=\"attachment_7675\" style=\"width: 860px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-7675\" class=\"wp-image-7675 size-full\" src=\"https:\/\/cdn.bap-software.net\/2022\/11\/what-is-altcoin.jpg\" alt=\"What is Crypto? What is Altcoin?\" width=\"850\" height=\"478\" \/><p id=\"caption-attachment-7675\" class=\"wp-caption-text\">What is Altcoin? &#8211; Image: icoclone.com<\/p><\/div>\n<h2><b>IV. What is the crypto exchange?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A crypto exchange is a place where investors can buy and sell cryptocurrencies. Exchanges reflect the current market prices of the cryptocurrencies they offer. There are two main types of crypto exchanges:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Centralized Exchange (CEX): This is a crypto exchange with a third party acting as an intermediary that controls cryptocurrency trading activities. Binance, Huobi, Gate.io,&#8230; are famous CEX exchanges in the world<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decentralized Exchange (DEX): This is a blockchain-based crypto exchange that allows the transfer of various digital assets on a secure open market without middlemen<\/span><\/li>\n<\/ul>\n<h3><b>Conclusion<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Thus, the above is an overview of crypto knowledge for newcomers. Through this article, hopefully it can help you better understand \u201cWhat is Crypto?\u201d. Although it is impossible to say for sure how cryptocurrencies will be used in the future. Is it as Rick Falkvinge (founder of the Swedish Pirate Party) said: \u201cBitcoin will eliminate banking the way email has done with handwritten letters.\u201d But given its existing use cases and applications, there is no denying the popularity and future potential of crypto.<\/span><\/p>","protected":false},"author":25,"featured_media":7674,"template":"","meta":{"_acf_changed":false},"tags":[10246,10247],"blog-cat":[2074,2058],"class_list":["post-7672","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","tag-cong-nghe-blockchain","tag-tien-dien-tu","blog-cat-blockchain","blog-cat-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is Crypto? 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