Bittime – If you are a beginner and want to get to know crypto, don't take the risk by investing straight away. Because crypto is a complex ecosystem. Understand the following 5 crypto quadrants to understand more about cryptocurrency and its ecosystem in detail.
What Is Crypto?
Before discussing the crypto quadrant, beginners must also understand the literal meaning of crypto and its concepts.
Conceptually, crypto is a combination of 3 things, namely the internet, blockchain , and rewards. Why a combination of these 3 things? Because crypto is a digital asset that only exists in the internet world. Even though it only exists in the internet world, crypto provides real rewards for its users.
Blockchain is a technology or can also be called a container that is used to store transaction data digitally using cryptography .
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5 Crypto Quadrants
Source: Angga Adinata Youtube
On his YouTube channel, one of Indonesia's crypto influencers, namely Angga Adinata, shares information about crypto. For him, crypto is not just about trading. There is a lot to do in the vast crypto ecosystem.
One of the things Angga discussed was about the crypto quadrants that beginners must understand in order to understand crypto well. So, when you decide to invest in crypto, don't just jump on the bandwagon or FOMO.
So, here are 5 crypto quadrants that beginners must understand when they first enter this ecosystem.
1. Crypto as Base Currency
Increasingly advanced technological developments have made the variety of currencies more diverse. Not only dollars, euros, rupiah, and others. The new currency that has become controversial is of course crypto.
Crypto becomes currency or what is also commonly called cryptocurrency. And like other currencies that have regional restrictions, crypto boundaries are not limited by a geographic region, but rather the crypto ecosystem itself.
Crypto as currency is only used in its own ecosystem, both for payments and for rewards to users.
In this quadrant, there are major cryptocurrencies, such as Ethereum, Cardano, Phantom, Solana, and others. The main crypto means crypto that already has its own network where there will be other crypto tokens on top of their network.
2. Crypto as a Governance Token
The second crypto quadrant is crypto as a governance token. This quadrant is known as decentralized application. What this means is that users choose more power which also plays a role in determining what the continuation of a token should be in the future.
This decentralized application issues tokens which then determine users in governance. This is because users will become a community in the future. Crypto token parties will usually vote on their network for users to ask for opinions on the sustainability of the network or token.
The crypto spirit in this quadrant is Web3 . Because here, crypto is a business startup.
3. Crypto as Digital Currency
If in the first quadrant crypto acted as a currency base, but was only limited to its ecosystem, now crypto is expanding its role as currency.
Because, in the third quadrant where crypto acts as a digital currency, working together with the real world ecosystem as also applies to other currencies, such as pairs with dollars, rupiah, and others.
Here there are USDT & USDC, IDRT and other stablecoins which function as currencies that collaborate with other currencies.
4. Crypto as a Meme Revolution
Crypto can be considered a fun project if seen in this quadrant. Memes, which do provide entertainment, are transformed as part of a light investment, but still provide rewards when studied seriously.
Meme coin, which was considered a joking token, turned serious because many people were interested in this project. For example, Dogecoin now has a market capitalization of billions of dollars because it is a meme coin, not just based on its utility.
In fact, Ethereum made a comeback when the meme coin appeared. Then Solana also rose from its slumping price of around $22 to around $150 during meme season. Meme coins have good power because they prioritize community.
Also Read: Basic Guide to Crypto Trading Strategies for Beginners
5. Crypto as Digital Property
Sophisticated technology has indeed changed many things in economic terms, especially investment instruments. If ten years ago investment only consisted of buying land, gold, and the most sophisticated was company shares, now property investment can be digitalized.
Land, paintings, government bonds, even diamonds can be bought and sold digitally with crypto. In this quadrant, crypto changes assets that are not liquid, become more liquid and can even be accessed by the global market. This quadrant is known as real world assets or RWA.
Also Read How To Buy Crypto:
Conclusion
Because it is so complex, crypto cannot be understood from just one point of view. Crypto is not just about trading. So, study crypto in more depth if you want to join this ecosystem.
Dear Beli Crypto from Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
10 Ideal Cryptos for Beginners: AVAX, SOL and More
Crypto Staking: A Basic Guide For Beginners
Crypto Regulations Around the World Are Changing, Learn Here
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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