Cryptocurrencies – a Guide for Beginners

A bitcoin - maybe a good decision to invest? unsplash-logoAleksi Räisä

There is a multitude of electronic currencies. Those who plunge blindly into it will certainly experience a belly landing. A guide for beginners not to bet on counterfeit or dead currencies – or on cryptocurrencies at all.

Actually there are numerous cryptocurrencies existing. It is almost like the proverbial stars in the sky: no one has ever counted them. Realistic estimates assume around 1600 different currencies. According to the Wikipedia list, there are at least 1600 different payment systems. But these figures are not up to date in a fast market. They are over a year old . A lot can happen in a day, even an hour when it’s on cyber business. More realistic are the estimates of the specialists portal www.kryptoszene.de. They assume in a study made by themselves that more than 2,000 crypto currencies exist, but they refer to the portal www.deadcoins.com by stating that up to 87 percent are considered “virtually dead”.

But caution is advised with “Dead Coins”. The lists available there are created by the users. The publishers of Dead Coins therefore distance themselves from the contents of their website in a disclaimer. Thus, no editorial checks are made. If you want to get rid of your competitor, maybe such way of bad marketing seems being appropriate for some.

So caution is obviously advised with small, unknown currencies. According to www.coinmarketcap.com, the currencies Bitcoin, Ethereum, SRP, Bitcoin Cash, Tether, Litecoin, EOS, Binance Coin, Bitcoin SV and Stellar determine the market (these are the Top 10’s there). The website currently lists a total of 2406 currencies. Just saying …. and even more confusing such people searching for clear and severe data. 

If you want to know how cryptocurrencies work, you can ask top dog Bitcoin for guidance: Anyone who has a bad feeling about the confusing market and the lack of regulation is certainly not entirely wrong. The risk of losing your investment by betting on the wrong currency is very, very high. There is also no investor protection and (by concept) no regulation. Those who are afraid of risk are probably not entirely wrong. Especially beginners should keep their hands off the market.