Understanding what a cryptocurrency is an important step to increasing your financial knowledge. These next-gen assets have been in use for over 13 years now. Cryptocurrencies may seem like some hard-to-explain technical phenomenon, but the truth is that they are simple codes that run over decentralised networks. The market has come a long way since its launch. Today’s fourth-generation blockchains provide full programmability and support advanced DeFi features. Here’s everything you need to know to get you up to speed on what is a cryptocurrency and how they can help you to prosper in 2022.
What is Blockchain? — META 1 Coin
To understand cryptocurrencies, you need to grasp blockchain technology. The best way to describe blockchain technology is to think of the family game Monopoly. In Monopoly, one person acts as the bank. They have no oversight, and in many cases, they abuse their position to their advantage. Think of this setup as a centralised financial system. Now imagine the same game, but this time, all players had to approve or deny each transaction in order for it to be valid. It would be harder for anyone to cheat, as everyone would have full transparency. Additionally, transactions could be conducted faster as there are more participants involved.
Teamwork – META 1 Coin
Blockchain operates in the same manner. Rather than your bank determining if a transaction is valid, network nodes work together to keep the system secure. There are many different ways to accomplish this task including mining, staking, and more. Early cryptocurrencies like Bitcoin relied on miners to keep the network safe. The problem with miners is that they use a lot of energy to participate in the Proof-of-Work (PoW) consensus algorithm. Recognising the environmental impact of these systems, most new blockchains leverage a Proof-of-Stake (PoS) consensus. It has a smaller carbon footprint and requires no special mining equipment. Networks like META 1 use DPoS systems that also provide an easy way for users to secure passive income.
Benefits of cryptocurrencies – META 1 Coin
Aside from the added transparency that blockchain technology brings to the market, there are a lot of other advantages that one gains. For example, the technical structure of cryptocurrencies eliminates the middlemen. Transactions are completed in a direct peer-to-peer manner and can be verified in real-time using a blockchain explorer by anyone. This structure is a significant upgrade from calling your bank and sitting on hold for hours trying to figure out why your check hasn’t cleared, or payment posted. The centralised nature of the traditional financial system is skewed against the average user. You are left putting all of your trust into a third party which can often lead to poor results or losses. Cryptocurrenceis help users regain control.
Cryptos today are more advanced – META 1 Coin
The crypto market continues to evolve to meet the growing needs of its users. The META 1 stablecoin is a next-gen protocol that encapsulates the most advanced technology in the market. The system eliminates many issues suffered by earlier cryptocurrencies including volatility. The developers pegged the value of the token to a basket of self-appreciating gold-related assets. The coin gains self-appreciating characteristics as the value of the pegged assets increase. This approach makes META 1 the perfect token for people with long-term savings goals. The network also integrates a variety of low-risk passive income features. You can secure 10 per cent APY on your savings using the META vault.
Understanding crypto and using it to profit – META 1
Now that you have a better idea of what makes cryptocurrencies so remarkable, you are ready to enter the market. In the past, this process required you sign up for a centralised exchanges like Coinbase or Binance. This step was costly, time-consuming, and demanded you to provide your personal information to third parties.
A new day – META 1
However, today’s newest networks like META 1 feature direct fiat onramps in their ecosystems. As such, you can seamlessly enter the DeFi network, secure returns, and spend your crypto-like fiat anywhere that accepts VISA. Stop losing to inflation and start using cryptocurrencies to secure wealth in 2022.