Bitcoin and Other Cryptocurrencies

Cryptocurrencies are rewriting the rules of money! These digital currencies use cryptographic algorithms for security and run on decentralised networks, meaning

no single entity (like a bank or government) controls them. Instead, they rely on blockchain technology — a transparent, tamper-proof digital ledger that keeps everything in check.

Mining: The Digital Gold Rush

Some cryptos, like Bitcoin, are mined — but not with pickaxes! Instead, powerful computers solve complex mathematical puzzles to validate transactions and add new blocks to the blockchain. The reward? Freshly minted Bitcoin!

Beyond Mining: Proof-of-Stake & More

Not all cryptocurrencies rely on mining. Many, like Ethereum (after its big upgrade),

use Proof-of-Stake (PoS), where participants stake their own coins to help validate

transactions. It’s faster, more energy-ecicient, and rewards those who hold their tokens.

Scarcity vs. Unlimited Supply

One thing that makes Bitcoin so valuable? It’s scarce — only 21 million BTC will ever

exist. Other cryptos have no fixed supply, meaning their availability can increase over

time. This dicerence can impact value, inflation resistance, and long-term potential.

Cryptocurrencies: High Risk, High Reward

If you love a thrill, crypto might be your kind of rollercoaster! Unlike traditional assets,

cryptocurrencies are wildly volatile, with prices swinging based on supply, demand, and

pure market sentiment. One tweet, a government decision, or a viral meme can send

prices soaring — or crashing — overnight.

Do Cryptos Have "Real" Value?

Unlike gold, real estate, or companies that generate cash flow, most cryptocurrencies

don’t have intrinsic value in the traditional sense. Instead, their worth comes from:

• Utility – What can it actually do? Smart contracts, payments, decentralised finance (DeFi), NFTs40... the list keeps growing.

• Adoption – The more people and businesses use a cryptocurrency, the stronger

  its value.

• Network Effects – Think of Bitcoin or Ethereum: the bigger the network, the

  harder it is to replace.

• Investor Sentiment – Hype, fear, and speculation can drive massive price

  swings.

  
  

Is Crypto for You?

It all depends on your risk tolerance, investment goals, and time horizon. If you can handle the ups and downs, crypto might be worth a spot in your portfolio. If not? Stick to traditional assets. Either way, understanding how and why crypto moves is key to making smart decisions.

Cryptocurrencies are not traded on traditional stock markets like the New York Stock Exchange (NYSE) or Nasdaq. Instead, they are primarily traded on cryptocurrency exchanges, such as: Binance, Coinbase, Coinspot, Kraken and Bitfinex.

Some crypto-related financial products are available on stock market platforms, such

as:

• Bitcoin ETFs (Exchange-Traded Funds) – Funds that track Bitcoin’s price,

  available on stock exchanges (e.g., ProShares Bitcoin Strategy ETF).

• Crypto-related stocks – Companies involved in the crypto industry, like:

  • Coinbase (COIN)

  • MicroStrategy (MSTR)

  • Marathon Digital Holdings (MARA)

• Blockchain ETFs – Funds investing in blockchain technology companies.

• FX — you can trade cryptocurrencies similar to foreign exchange (FX).

Examples of Cryptocurrencies:

• Bitcoin (BTC) – The first and most well-known cryptocurrency, created by Satoshi

  Nakamoto in 2009.

• Ethereum (ETH) – Supports smart contracts and decentralised applications

  (DApps).

• Ripple (XRP) – Designed for fast international money transfers.

• Cardano (ADA) – Focuses on scalability and sustainability.

  
  

Uses of Cryptocurrencies:

• Investment & Trading – Buying and selling for profit.

• Payments – Some merchants accept crypto as payment.

• Smart Contracts & Decentralised Finance (DeFi) – Automating agreements

  without intermediaries.

• Store of Value – Some view Bitcoin as "digital gold."

“This content is provided for informational purposes only and does not constitute financial advice. The information presented is of a general nature and does not take into account your personal objectives, financial situation, or needs. It should not be relied upon as a substitute for independent financial advice. You should consider seeking professional advice from a licensed financial adviser before making any financial decisions. While every effort has been made to ensure the accuracy of the information provided, no guarantee is given that it is free from errors or omissions.”