Understanding the Fundamentals of Crypto Assets: A Comprehensive Guide

Meet Crypto Asset, "The Asset in Vogue"

by Priscilla Ajayi
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The universe has become civilized more than ever. Several aspects of technology now have their takes. Moreso, crypto assets have successfully established their territory. Such that, in this 21st century, people who believe in digital currencies rule the world in terms of investments.

This article centres on one of these digital currencies which is cryptocurrency. Cryptocurrency or crypto assets is a digital currency developed with complex and secured encryption.

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Crypto assets.

Buying and keeping cryptocurrencies not only serve as an investment but also a kind of asset ownership. If you acquire and trade cryptocurrencies to keep them, it means you’re amassing crypto assets.

Why you Should Invest in Crypto Assets

Although you might be at a disadvantage when the price of the crypto you bought drops. But what if the price skyrockets and turns out to be a multiple of the price you initially bought it? Can’t you picture the profits you will be left with? 

By now, you should know why crypto assets are worth keeping. However, if you still don’t bank on that illustration, then stick around to clear your doubts.

Investing in crypto assets comes with a lot more benefits than you can ever imagine. Mind you, crypto-assets also have their disadvantages. So dear investors, be meticulous before dabbling blindly into any crypto-assets investment for the sake of it making you rich. 

Study several cryptocurrency guides and follow crypto trends to keep track of related information.

Disclaimer: The writer does not portray crypto assets or any initial coin offerings (ICOs) as a must-have for everyone. This is because just as everything has its disadvantages, investing in crypto assets also has its bane.

Now, perhaps the question, “is crypto an asset?” bothers you. No qualms, the next section can help you out.

See also: Top 10 Interesting Myths about Cryptocurrency

Are Crypto Assets Really Assets?

Well, yes they are. Unlike the common assets (land, inventory, equipment, etc), crypto assets are intangible assets. An intangible asset is any possession that is not physical. Moreover, crypto-assets use ledgers over the internet to show ownership.

Investing in cryptocurrency automatically means you are keeping an intangible asset somewhere. So perhaps you’ve been doubting if your crypto savings is an asset, yes it is. Other examples of intangible assets include copyrights, patents, trademarks, goodwill, and many more. 

The government cannot control the value of cryptocurrency through inflation, unlike fiat money. Crypto assets have a restricted supply backed by a series of mathematical algorithms. All of these contribute to making cryptocurrency a dependable way to store your valuables for a longer period. That is, buying crypto assets is a means of investment that you count on. 

However, over the years, crypto assets have been liable to several extortions and random fads. Assets like technology stocks, houses, cannabis stocks, etc, also face the trouble of market bubbles. Thus, an investor must be cautious when keeping some form of assets. This is to prevent losing more of their assets with time.

Examples of Crypto Assets

Just as there are numerous examples of tangible assets, crypto assets also have diverse types. So it is either you invest in one crypto asset or another. However, if you are a big fan of investing in cryptocurrencies, you are free to keep multiple cryptos.

More importantly, cryptos are somehow safe. In that, you can choose to be the only one that knows about your assets. Below are the top three examples of crypto assets you can invest in.

  1. Bitcoin

Bitcoin (BTC) is the most widely acquired crypto asset in the world. It is the premier decentralised cryptocurrency in the universe. Bitcoin is a crypto asset that carries out and keeps track of transactions over the Bitcoin blockchain. It uses public-key cryptography to perform all its activities.

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Since all Bitcoin activities occur within its blockchain, no basic authority has the power to oversee its processes. Hence, bitcoin is well-secured to keep as a crypto asset. 

Typically, most people invest in bitcoin because of its consistent hike in value. Although at times, the bitcoin value might drop. However, the former case is usually the most prevalent. Hence the popular name for bitcoin is digital gold.

  1. Litecoin

If you don’t want to keep Bitcoin as your crypto-asset, then try out Litecoin (LTC). Litecoin is a cryptocurrency developed from the Bitcoin blockchain as far back as October 2011. Investing in Litecoin can also secure your money just like the famous Bitcoin does. 

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Litecoin and Bitcoin have identical features but are programmed with distinct algorithms. Litecoin transactions are faster when compared to Bitcoin. Moreover, you can easily mine them using application-specific integrated miners. 

  1. ZCash

The main aim of ZCash is to create a crypto asset with more privacy features for its investors or traders. ZCash has the same codebase as Bitcoin.

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ZCash uses special cryptography that provides the greatest privacy for its investors. This crypto asset is a digital asset you can never go wrong with. It is also referred to as “the HTTPS of blockchains“. ZCash protects your liberty to invest and spend conveniently.

Benefits of Investing in Crypto Assets

  1. Crypto assets are accessible

Unlike other tangible assets which might require you to take some steps before you access them, crypto assets are faster to access. All you need to do is set up your cryptocurrency wallet and accumulate your coin gradually. Then, there you go!

Note that you can access your crypto wallet easily with just an android/computer and an Internet connection.

See also: Fast Introduction to Blockchain and Cryptocurrency for Nigerians

  1. Your Crypto assets are secure

The savings in a cryptocurrency wallet are protected by a blockchain system and transaction verification processes. Thus, a stranger will not be able to access your wallet unless he/she has your private key/password.

  1. Protection against inflation 

Cryptocurrency protects against inflation. So be rest assured that your crypto assets are always safe even when there’s a general hike in price.

Fun Facts About Crypto Assets

There are lots of interesting facts about crypto assets. Let’s take a look at some of them.

  1. Crypto assets have no government backing

Most currencies in the world (dollars, euros, etc) usually have a fundamental authority backing. However, cryptos are different. Over the years, no government or central bank ties are traceable to crypto assets.

  1. Their value varies often

Crypto assets don’t have a stable value. That is, their value either increases or decreases with time. If you are a fan of cryptocurrency trends, you will easily notice their volatile nature.

  1. No miners, no crypto

Crypto mining is the process of solving sophisticated mathematical algorithms with a computer to analyze and login transactions. This process is carried out by a “miner”. When you mine crypto, you earn cryptocurrency coins as a reward.

To cut the story short, crypto transactions must be verified by a miner before you can call them a crypto asset. So this means without a miner, there’s no crypto asset for you.

See also: How to Make Money from Cryptocurrency in Nigeria

In a Nutshell

Investing in crypto assets is a new method of accumulating wealth. It assures you of having a digital possession to fall back on. However, you need to be extra careful when acquiring crypto assets to ensure you aren’t at the edge of the rope.

While digesting this article, I’m pretty sure you’ve learned all you need to know about crypto assets, their benefits, and why you should invest in them. So, it’s left for you to decide whether you’re keeping a crypto asset or not.

Hey, you are not alone! You can subscribe to our newsletter to get related cryptocurrency posts from time to time. Now, how has the journey been?

You can also connect directly with us on WhatsApp by clicking here. We are sure it has been a sweet ride all the way. Happy reading!

About Author

Avatar of Priscilla Ajayi
Priscilla Ajayi
Priscilla Ajayi is a pharmacist-in-view and an avid writer with interests in health, lifestyle, career, relationships, technology, and self-development topics.

As an adventurer, Priscilla is always taking bold moves towards expanding her niche in writing, learning new skills, and achieving her set goals.

In her downtime, Priscilla can be spotted reading novels, listening to music, singing, writing poems, or sketching images.

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