It is hard to find a person who has never heard of cryptocurrencies or the notorious "digital economy," which is supposed to harness the full power of crypto technologies for everyday use both inside the country and beyond its borders. At the same time, it is hardly a secret that all the "digital" initiatives offered by the government under the guise of "convenience" for citizens are aimed at tightening control over them and collecting huge amounts of data about each individual. That is why anyone who considers themselves financially literate and sincerely wishes success for themselves and their family members should at least have a basic understanding of what cryptocurrencies are, what crypto trading entails, and generally how money is made and lost in this space.

The Essence of "Cryptocurrencies" – What Are They?

Let's define the term "cryptocurrency." We will move away from technical jargon and give a simple, everyday explanation.

The concept of cryptocurrency as an asset is indisputable, even though the authorities in most countries have not adopted clear legislation regarding them.

A token is a cryptocurrency that does not have its own blockchain and operates on another network. The word "coin" is also often used to refer to a cryptocurrency that has its own blockchain. However, in practice, the terms "token" and "coin" are rarely distinguished and are not significantly different.

At this point, the description may seem somewhat complicated. However, everything will fall into place with your first real experience.

Are Technical Skills Necessary?

After defining what a cryptocurrency is, let's move on to the second part of our question – do you need technical knowledge to be involved in crypto?

To be "in the know" about cryptocurrencies, you don't need to be a "techie" or understand every technology you use. I can say from personal experience: I have never been interested in the technologies behind cryptocurrencies; I am only interested in the benefits they provide me as a user. I know only superficially how blockchain, decentralized finance (DeFi), or NFTs (non-fungible tokens) work. Moreover, the main task of every developer of a service is to make their product understandable and easy to use. Over the past few years, "crypto" has made significant progress in this regard.

Therefore, you can choose your own path in understanding cryptocurrencies: either a meticulous study of technological components or the opportunities cryptocurrencies offer for trading. The latter path is what we will discuss in the next section.

What Is Crypto Trading?

The cryptocurrency market has two important qualities: high volatility, meaning large price changes of assets over a short period, and high capitalization, which is a relative indicator of market development. These two factors make cryptocurrencies very promising for trading.

Crypto trading gives you the freedom of choice – your success depends solely on your actions. Here, you choose your level of risk: from selecting services to store your money to directly choosing your trading strategy.

Thank you all for your attention.