Cryptocurrencies are still a mysterious arena for most people. With time, an increasing number of people are getting interested in cryptos and considering trading and investments in digital currencies. So, there are a number of things that you probably do not know yet about the world of digital currencies before you open an account. Keeping that in mind, here’s highlighting the top five facts about cryptocurrencies.
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#1 Limited number of bitcoins are available
You read that right! If you think that it will be possible to purchase a limitless amount of cryptocurrency, you are wrong. Crypto tends to be a limited resource, such as oil or gold. This is the reason why the value of cryptos like bitcoin increases when the supply starts going down. Investors are aware that at some point, the number of bitcoins and altcoins available in the market is going to run out.
#2 The creator of bitcoin is still anonymous
So, who is the one behind the creation of this virtual currency? The truth is that no one knows. So, a highly surprising fact about crypto is the organization or person who created the currencies is still unknown. In any case, the bitcoin creator is referred to as ‘Satoshi Nakamoto.’ Another popular belief is that this name happens to be an acronym for the major tech companies – Samsung, Toshiba, Nakamichi, and Motorola.
#3 Cryptos cannot be banned physically
Across the world, several countries have discussed crypto bans. But despite the desire to ban cryptos, it is physically not possible. Are you wondering why? Well, anyone can get crypto wallets. After all, countries are able to make rules, but they don’t have the ability to ban the crypto market. Nowadays, many countries have removed the rights regarding cryptocurrency usage, such as Nepal, Bangladesh, Ecuador, Bolivia, and Cambodia.
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#4 More than 5,000 different cryptocurrencies
Cryptocurrencies are in high demand at present. Thus, it comes as no surprise that new currencies are coming up daily in the industry. Going by the current estimates, there are more than 5,000 cryptocurrencies in the world. Of course, most currencies are not worth that much, though they can be in the future.
In fact, there can always be a diamond in the rough for people to make the most of. In simple words, some altcoins can increase in value with time. As more than 5,000 cryptos are available, some rather creative and funny ones are present out there, like Cabbage, PizzaCoin, and Coinye (name derived from Kanye West).
#5 Cryptocurrencies are taxable
Cryptos are taxable based on the country you reside in. As cryptocurrencies have come into the mainstream markets now, tax agencies across the world are trying to ensure that they have their bit of the pie. At present, many nations have levied taxes on crypto profits.
The bottom line
And that’s all! These were the top five facts you need to know about cryptocurrencies before trading and making investments. Make sure to know all the facets of cryptocurrencies before you deal with it.
Read also: Top Five Cryptocurrencies to invest in 2022