Cryptocurrency has been around for more than 15 years, and there is more than £1.8 trillion-worth of the stuff floating around on the internet.

Yet for all the tales of rows and riches that have engulfed crypto in recent years, not that many people can tell you what it actually is.

Even fewer can answer the simple question: what’s the point?

The PA news agency breaks it down.

– What is cryptocurrency?

Crypto is a type of digital money designed to be used over the internet. It does not exist physically, like dollars or pounds.

There are many types of crypto, but you have probably heard of the biggest and oldest one: Bitcoin.

Invented in 2008, a Bitcoin is essentially a computer file which is stored on an app, which functions as a digital wallet. There are many of these apps on the market.

You can send and receive crypto with other people – and it is frequently traded for money. Lots of it.

– How does it work?

Bitcoin is decentralised. That means it is not managed, recorded or stored by any one entity, like a national government or a bank.

Instead, every record is logged on a shared list called a blockchain.

Think of it like an online spreadsheet which no single person controls. Instead, it is shared around people who use it all over the world.

Those people get small financial rewards for keeping the ledger accurate and up-do-date. It is immutable, which means it is virtually impossible to go back and edit previous entries (or “blocks”).

This makes it attractive to people who want to break free of traditional currencies, and the influence that governments, central banks and financial institutions hold over them.

– What’s the point?

While there is a small, growing number of places that accept crypto as a real-world payment method, you’ll struggle if you try to use it to pay for most goods and services in the UK.

But the fact that you do not need to use a bank means that you can use crypto to operate outside the traditional financial system.

This appeals to people who want to send money across borders often, for example, where intermediaries often take a cut on transactions using traditional money.

It also makes it easier to act anonymously. Many crypto service providers do not have the same identity checks as banks.

As a result, it is generally harder to track where crypto has come from or where it is going than traditional currencies.

Unfortunately, that means criminal gangs or even terrorists often use it to launder money. Crypto is also sometimes used to transact illegally with sanctioned countries like Russia.

– Why do some people like it so much then?

Many people love crypto because it is extremely volatile, meaning you can make vast amounts of money very quickly by trading it at the right time.

One whole Bitcoin in October 2023 was worth about £27,000. Just a year later, that has nearly doubled.

Now consider if you had bought dozens of Bitcoins a decade ago, when they were valued at about £260, and you can see why some people are evangelical about it.

In that sense, it is different to investing in traditional assets, like stocks and shares, which are generally much more stable.

– Is it a safe investment?

No. Crypto has already been through several monumental boom-and-bust cycles already, which have done huge amounts of harm.

Millions of people put their life savings into cryptos like Bitcoin thinking it would make them better off.

But huge crashes in value in 2018 and 2022 left people’s finances in ruins – and the fact that it is still relatively unregulated means there have been a lot of scams.

The most high profile was in 2022, when FTX, the crypto exchange founded by Sam Bankman-Fried, collapsed.

Mr Bankman-Fried was later sentenced to 25 years in prison for defrauding customers out of billions of US dollars.

So while Bitcoin is near its record price again now, it is still generally considered extremely risky.

As the old adage goes: never invest more than you can afford to lose.

Hong Kong Exchanges and Clearing Limited (HKEX) today announced the launch of the HKEX Virtual Asset Index Series, offering a reliable benchmark for a fast-emerging asset class that supports Hong Kong’s development as Asia’s leading digital assets hub.

The Index Series, which will go live on 15 November 2024, provides investors with transparent and reliable benchmarks for Bitcoin and Ether pricing in the Asian time zone. It seeks to provide a single reference price for virtual assets, where these assets are often traded at different prices across global exchanges.

HKEX Chief Executive Officer, Bonnie Y Chan, said:

“We are delighted to introduce the HKEX Virtual Asset Index Series to meet the region’s growing demand for this fast-emerging asset class. By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions, which will in turn support the development of the virtual asset ecosystem and reinforce Hong Kong’s role as an international financial centre.”

The Index Series will consist of the Reference Index for Bitcoin and Ether, respectively, as well as the Reference Rate for Bitcoin and Ether.

The Reference Index is a 24-hour volume weighted reference spot price of Bitcoin or Ether, using prices aggregated from top-rated virtual asset exchanges, calculated in real-time and denominated in US dollars. Meanwhile, the Reference Rate is designed for the settlement of financial products, calculated daily at 4:00 pm Hong Kong time.

The Index Series, which will be the first EU Benchmarks Regulation (BMR)-compliant virtual asset index series developed in Hong Kong, will be administered and calculated by CCData, a UK-registered benchmark administrator and virtual asset data and index provider.

SPONSORED POST*

An influential crypto analyst is forecasting a remarkable rise for certain digital currencies in December. ZDEX is expected to lead this anticipated surge, drawing significant attention from investors. The market is ripe with speculation about which other coins might experience substantial growth. Delving into these insights could reveal promising opportunities as the year-end approaches in the ever-evolving world of cryptocurrency.

The ZDEX Presale Is Your Rocket to DeFi Riches!

The ZDEX presale is your chance to get in on the next DeFi beast before it shoots to the moon —don’t let it slip by! Starting at just $0.0017, ZDEX is rising fast, with predictions of up to 1,000% returns in the upcoming bull market.

ZDEX is the engine behind ZircuitDEX, the blazing-fast DEX built on Zircuit L2. Offering swaps smoother than a Formula 1 pit stop, extremely low fees, and minimal slippage, ZircuitDEX makes trading effortless. Fully EVM-compatible, it integrates seamlessly with Ethereum tools while its ZK-proof security keeps your assets locked down tighter than a vault.

For liquidity providers, the concentrated liquidity feature of ZircuitDEX offers up to 500x capital efficiency than any other DEX. And with automated strategies working behind the scenes, your profits grow while you relax and enjoy the ride.

🚀 Meme coin gains that beat any adrenaline rush you’ve ever felt 🚀

Missed out on past meme coin explosions like BRETT’s 14,000% surge? Now’s your chance to get ahead! With ZircuitDEX’s meme coin launchpad, you can snag early access to the next big token and cash in even before the hype builds.

Currently, ZircuitDEX is one of the most promising DeFi projects out there. So, don’t wait – the presale’s here, the clock’s ticking, and ZDEX tokens are literally flying off the shelves, with the DEX governance, airdrops, staking, and the potential for massive gains all up for grabs.

>>>Follow in the footsteps of UNI and secure your ZDEX now!

Site: ZircuitDEX

Twitter: https://x.com/ZircuitDEX

Telegram: https://t.me/ZircuitDexVerify

Aptos (APT) Poised for Gains as Altcoin Season Approaches

Aptos (APT) is trading between $9.50 and $10.60, showing potential for growth. The coin has surged 25.52% over the past month, indicating strong momentum. The Relative Strength Index is at 42.84, hinting that APT may be oversold and ready for an upward move. The first resistance level is $11; breaching this could push the price to the next hurdle at $12. Support stands firm at $9.02, suggesting limited downside. The Stochastic indicator at 26.01 also points toward a possible rally. With the crypto market gearing up for an anticipated bull run and altcoin season, Aptos could be set for significant gains.

Celestia (TIA) Set for Surge Amid Bullish Crypto Market Sentiment

Celestia (TIA) is showing strong signs of potential growth. Trading between $5.61 and $6.55, it has gained 11.204% over the past month. With both the 10-day and 100-day simple moving averages around $5.85, the price demonstrates stability and readiness for an upward move. The Relative Strength Index at 58.35 indicates room for growth before hitting overbought territory. The nearest resistance is at $7.01; surpassing this could propel TIA toward the second resistance at $7.95, offering potential gains of over 30%. The positive MACD level supports the bullish momentum. As altcoin season approaches, Celestia may be poised for a significant breakout.

Ondo (ONDO) Nears Breakout as Altcoin Season Approaches

Ondo (ONDO) is showing strength, trading between $0.74 and $0.88, above its 10-day moving average of $0.74. Over the past month, it has climbed by more than 8%, indicating growing momentum. The coin is nearing its resistance level at $0.93. A break above could see it target the next resistance at $1.06, representing a significant gain. The RSI is below 50, suggesting there’s room for upward movement before reaching overbought levels. The MACD is slightly negative but could turn positive with continued price increase. With supportive technical indicators and the altcoin season approaching, ONDO may be poised for a substantial rally.

Quant (QNT) Eyes Breakout Amid Altcoin Bull Run Hopes

Quant is trading between $64.67 and $69.27, close to its 100-day moving average of $65.49. Despite a monthly drop of 13.80%, it’s stabilizing near support at $62.13. The RSI at 45.46 suggests it’s not overbought, hinting at potential upward movement. A push above the resistance at $71.33 could see it reaching $75.93, offering a possible gain of around 10%. With the anticipated altcoin season, Quant may reverse its six-month slide of 42.09%. Traders are watching for signals like a bullish MACD crossover to confirm an uptrend. The coin’s current position might be a springboard for growth in the coming weeks.

Conclusion

Although APT, TIA, ONDO, and QNT may have less short-term potential, ZircuitDEX stands out by offering 500X capital efficiency with lightning-fast transactions and zero slippage. The ZDEX Token presale at a 70% discount presents a chance for 500% returns upon launch, with benefits like early access to new meme coins and governance rights.

*This article was paid for. Cryptonomist did not write the article or test the platform.