With the popularization of cryptocurrencies, more and more people have started adopting this new technology. Unfortunately, despite the popularity of cryptocurrencies, first-timers still find the topic too confusing. After all, complex jargon can come off as intimidating.
However, familiarizing yourself with crypto doesn’t have to consist of mundane lessons. To jump-start your research on trading and investing, Co-creators of Earnity Domenic Carosa and Dan Schatt wish to help the crypto community expand and become more knowledgeable than ever. This article made ten helpful facts about cryptocurrencies that you probably didn’t know:
You’ll still need to file capital gains taxes on your crypto profits and losses.
Yes, cryptocurrency platforms use a decentralized system. However, the IRS will have dominion over your dividends once you sell your shares for a profit.
The crypto market is extremely volatile.
The value of penny cryptocurrencies can spike and drop by 200% or 300% in a matter of days.
The first commercial Bitcoin transaction involved pizza.
In May 2010, when a single Bitcoin was just around $0.004, Jeremy Sturdivant used 10,000 Bitcoins to buy two pizzas.
Cryptocurrency doesn’t revolve around Bitcoin.
On the contrary, traders and investors can choose from more than 7,300 cryptocurrencies on the market.
We can only mine up to 21 million Bitcoins.
Once we exceed the hard cap encoded into Bitcoin’s source code, we can no longer generate more.
Altcoins like Ethereum are versatile.
You can use the native coin Ether to execute smart contracts for minting NFTs, creating play-to-earn games, or even managing supply-chain distributions in business.
Ethereum charges users gas fees.
These represent the fair computation effort exerted to execute specific transactions.
Dogecoin is a joke.
The coin’s meme origins and how its value spiked to $0.688804 when various individuals started buying it for kicks as well.
Elon Musk is powerful in the crypto industry.
His massive investments enable him to nearly monopolize specific altcoins.
Crypto is illegal in China.
Financial institutions can’t engage in crypto transactions, and individuals can’t perform domestic mining.
Although cryptocurrencies will not replace fiat any time soon, they’ll open up innovative avenues in the finance industry.
Don’t fret about understanding complex, challenging concepts. Co-creators of Earnity Dan Schatt and Domenic Carosa want to create a safer and more accessible crypto world. People need to build knowledge of cryptocurrencies by learning fun, exciting facts before moving on to more intricate lessons.