Cryptocurrencies are a form of digital asset that exists outside the control of governments and central authorities. They have grown in popularity among people who want to dabble in assets that are outside the traditional trading and investing spaces and they believe it could be the future of money. Today, It is possible to make high returns by investing in cryptocurrencies but it is also possible to lose all your money.
Blockchain is the technology behind most cryptocurrencies and is also the inspiration for DeFi (Decentralized Finance). DeFi is a term that refers to financial applications that eliminate the middleman in financial transactions. When you make a purchase with your card, an institution sits in between you and the seller and has control over that transaction. The primary advantage of DeFi is its ability to give you more control over your money by taking out that institution.
An NFT (Non-Fungible Token) is another form of a digital asset that represents objects that exist in our real world like art or music. The money in my wallet can be exchanged for the money in your wallet and they are also equal in value (N1 is always equal in value to another N1) so physical money is fungible. This is different for NFTs, they have digital identities that make it impossible for them to be equal to another or exchanged. Each NFT is unique, they are non-fungible.
Technology continues to reshape our world and open up new possibilities but these opportunities are also accompanied by risks. The terms mentioned above could be the major drivers of the world in the next decade(s) or they could end up being abandoned developments. Register and attend our Investment Club Meeting tomorrow as we explore the opportunities and risks in Crypto, DeFi and NFTs with Njoku Emmanuel and Ezekiel Orji so that you are equipped to position yourself for the future – https://bit.ly/NovemberICMeeting