{"id":1168,"date":"2023-03-17T17:55:20","date_gmt":"2023-03-17T17:55:20","guid":{"rendered":"http:\/\/78.47.81.216\/?p=1168"},"modified":"2023-05-04T10:51:15","modified_gmt":"2023-05-04T10:51:15","slug":"how-much-does-crypto-get-taxed","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=1168","title":{"rendered":"How much does crypto get taxed"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/All-you-need-to-know-about-crypto-tax-1024x576.jpg\" alt=\"\" class=\"wp-image-1169\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/All-you-need-to-know-about-crypto-tax-1024x576.jpg 1024w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/All-you-need-to-know-about-crypto-tax-300x169.jpg 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/All-you-need-to-know-about-crypto-tax-768x432.jpg 768w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/All-you-need-to-know-about-crypto-tax.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In 2023, numerous countries achieved substantial advancements in the regulation of cryptocurrencies and altered their tax policies. Nowadays, interest in digital assets is growing among people outside of just crypto investors, making it important for particular countries to provide legal certainty for the industry. Additionally, there are more and more cryptocurrency transactions every day.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In order for you to become familiar with this subject, we will now outline all the data about taxes in crypto area. This is crucial because many individuals are interested in buying and selling digital assets to gain money, and cryptocurrency transactions may be performed for significant sums.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/image-22-1024x682.png\" alt=\"\" class=\"wp-image-1170\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-22-1024x682.png 1024w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-22-300x200.png 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-22-768x512.png 768w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-22-1536x1023.png 1536w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-22.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What kind of taxes are levied on crypto?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Cryptocurrency taxes are now imposed on a variety of activities carried out by companies and people using crypto. It sparks in-depth conversations on more particular concerns including the requirement for a crypto exchange license, crypto taxation, and other crucial subjects. The circumstance is always changing. Following are some&nbsp;rules for taxing crypto:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxation on capital gains. You can be liable for such taxes if you sell or trade USD or EUR. By calculating the cost basis\u2014the price paid at the time of purchase is subtracted from the sale price\u2014the gain or loss may be&nbsp;determined. Whether you&#8217;ve owned the asset for a short or long period of time before selling it may affect the tax rate for cryptocurrencies.\n<\/li>\n\n\n\n<li>Mining. For the purpose of crypto taxation, whenever you obtain digital currency by mining, the worth of it at the moment of receiving is regarded as income. The cost of equipment and energy may potentially be deductible as mining-related expenses.<\/li>\n\n\n\n<li>Coin spending. This implies that, depending on the market worth of the assets at the moment of the purchase, you would have to pay any relevant crypto taxes and disclose the cryptocurrency transactions on your tax return.<\/li>\n\n\n\n<li>Airdrops. It is taxable revenue when you get an airdrop from a project as a part of a marketing campaign or giveaway. \nThe amount received must be reported on a tax return by investors.\n<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Thus, it&#8217;s crucial to be aware that each jurisdiction may have a different approach to cryptocurrency taxes. For this reason, it&#8217;s essential to seek advice from an expert in the industry or a financial counselor in order to comprehend the implications of cryptocurrency transactions in your country.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is paying crypto taxes required in your case?\n<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Coins and tokens are therefore regarded as digital assets in the US and are often treated by the IRS in a manner similar to stocks or bonds. Cryptocurrency trades may result in profits that must be taxed as either capital gains or income. Taxes on crypto&nbsp;are also based on many elements, including how they were obtained&nbsp;and how long they were held.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s crucial to examine the way you&#8217;ve used your digital asset to ascertain whether you will&nbsp;encounter a&nbsp;tax burden associated with it. Let&#8217;s examine several scenarios in which&nbsp;investors are free from IRS obligations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When you receive coins as a gift, it&#8217;s commonly not taxable, so you don&#8217;t have to pay tax on them until you decide to sell them.<\/li>\n\n\n\n<li>You can be eligible for a charitable deduction on your tax return if you donate digital money directly to a recognized charity or nonprofit organization.\n<\/li>\n\n\n\n<li>Cryptocurrency transfers made between your personal wallets or accounts are not subject to taxes.\n<\/li>\n\n\n\n<li>When you choose to sell assets in the future, you may keep track of your initial cost basis and purchase timestamp to assess any prospective crypto tax repercussions. The staking rewards you receive while you stake ETH and hold ETH2 are often not taxed since the protocol has not yet released them.\n<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It is not taxable when you buy tokens on a cryptocurrency exchange and retain them. To put it another way, the tax on crypto&nbsp;is often assessed after you sell them and realize the profit or loss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How the amount of crypto tax is calculated?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, crypto&nbsp;is regarded as property in the US, which implies that any profits or losses from cryptocurrency trading are taxable as capital gains. It should be made clear that the&nbsp;rate of such a tax&nbsp;is determined by the payer&#8217;s&nbsp; level of&nbsp;income and the length of time the currency has been held.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Is there a way the crypto tax calculation procedure may be made simpler? A tool that aids in computing the tax obligations associated with cryptocurrency transactions is the \ncrypto tax calculator.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/03\/image-23-1024x682.png\" alt=\"\" class=\"wp-image-1171\" srcset=\"https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-23-1024x682.png 1024w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-23-300x200.png 300w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-23-768x512.png 768w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-23-1536x1023.png 1536w, https:\/\/blog.ag.qubiq.cc\/wp-content\/uploads\/2023\/03\/image-23.png 1600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Ways to declare crypto on a tax return.<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You must notify the IRS of any earnings when you acquire or sell coins. It is simple to collect the essential data for your&nbsp;tax returns thanks to the exchanges that offer reports on&nbsp;transactions that cover all account activity. The process might be more difficult if you have&nbsp;transactions spread across numerous exchanges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You may use&nbsp;tax software like CoinTracker or TokenTax to make the procedure of gathering info about your operations&nbsp;simpler. With the help of these&nbsp;apps, you may enter activity from all of your exchanges and produce a report. It&#8217;s crucial to remember that such software could demand additional expenses. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The reporting tax year for digital currency is the same as it is for traditional assets. To prevent penalties, it&#8217;s crucial to comprehend the tax year in a certain jurisdiction and complete your&nbsp;tax returns on time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Summarizing the discussion about crypto taxes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You might face a fine if you deliberately or negligently disregard crypto tax laws or regulations. Interest will be added to the penalty if it is not paid on time. However, what if you realize that you&nbsp;are unable to pay them at the moment? You might, for instance, ask the IRS for a repayment plan to improve your situation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Your guide to cryptocurrency taxes. Explaining Bitcoin and other crypto taxes. Do you have to pay taxes on digital assets? How much tax do you have to pay on the capital gains of cryptocurrencies?<\/p>\n","protected":false},"author":7,"featured_media":1169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[40,56,38,91],"authors":[37],"class_list":["post-1168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-alphaguilty","tag-cryptocurrency","tag-education","tag-taxes","authors-alphaguilty"],"acf":{"reading_time":4},"author-name":"AG Content Manager","suggested-articles":[{"ID":368,"post_author":"7","post_date":"2022-11-14 13:58:13","post_date_gmt":"2022-11-14 13:58:13","post_content":"<!-- wp:paragraph -->\n<p id=\"1938\"><a href=\"https:\/\/alphaguilty.io\/\" rel=\"noreferrer noopener\" target=\"_blank\">Alpha Guilty<\/a>, an all-in-one platform for launching crypto and NFT projects, has entered into a partnership with&nbsp;<a href=\"http:\/\/blockchaincenter.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">Blockchain center<\/a>, a premier provider of education, development, and consulting for crypto and blockchain technology. The partnership will focus on collaboration on the launches of the projects which were born in the center.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":369,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2022\/11\/blog-18-1024x576.png\" alt=\"\" class=\"wp-image-369\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p id=\"bd2b\">Blockchain Center is striving to become a worldwide hub for developers, entrepreneurs, and investors, helping them to learn and network on the topics of blockchain, cryptocurrencies, and digital assets. Alpha Guilty, for its part, aims to support young but promising crypto and NFT projects, providing them with a soft launch, professional consulting, and marketing assistance all the way.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"2b78\">The collaboration is expected to give talented creators at Blockchain Center more abilities for growth, as well as foster the development of new projects.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\">\n<!-- wp:paragraph -->\n<p>We appreciate Alpha Guilty\u2019s expertise in launching and nourishing crypto projects and their willingness to work with little-known though talented creators. Our team is excited to start this new journey with Alpha<\/p>\n<!-- \/wp:paragraph -->\n<cite><strong>Nick Spanos, co-founder of Blockchain Center<\/strong><\/cite><\/blockquote>\n<!-- \/wp:quote -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\">\n<!-- wp:paragraph -->\n<p>Our team has a strong interest in projects created in Blockchain Center, believing they are worth being launched at full-scale. We can hardly wait to start working with those projects, making them accessible to a greater audience<\/p>\n<!-- \/wp:paragraph -->\n<cite><strong>Mykhailo Sitalo, CEO of Alpha Guilty<\/strong><\/cite><\/blockquote>\n<!-- \/wp:quote -->\n\n<!-- wp:paragraph -->\n<p id=\"2280\"><strong>About Alpha Guilty<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"ebe9\">Alpha Guilty (previously CPAD) is an all-under-one-roof solution for launching and promoting NFT and play-to-earn projects. Alpha Guilty is a part of Cosima Capital, a crypto fund that brought together professional managers and analysts with many years of experience in capital and cryptocurrency markets. It actively invests funds in promising projects and helps them grow with marketing promotion and team-building support.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"ee4d\">Find Alpha Guilty on:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"30e1\"><a href=\"https:\/\/alphaguilty.io\/\" rel=\"noreferrer noopener\" target=\"_blank\">Website<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/twitter.com\/AGuiltyOfficial\" rel=\"noreferrer noopener\" target=\"_blank\">Twitter<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/t.me\/AlphaGuiltyAnn\" rel=\"noreferrer noopener\" target=\"_blank\">Telegram<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/discord.com\/invite\/S6YgxUfH5S\" rel=\"noreferrer noopener\" target=\"_blank\">Discord<\/a><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"76b4\"><strong>About Blockchain Center<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"a7cc\">Blockchain Center is a global platform for blockchain-and-crypto developers, entrepreneurs, and investors, providing a network of resources to facilitate success. Established in 2013 in New York, today supports crypto enthusiasts with lectures, hackathons, boot camps, and coworking worldwide.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"4c5c\">Find Blockchain Center on:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p id=\"a126\"><a href=\"https:\/\/www.blockchaincenter.com\/\" rel=\"noreferrer noopener\" target=\"_blank\">Website<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/twitter.com\/BlockchainCntr\" rel=\"noreferrer noopener\" target=\"_blank\">Twitter<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/discord.com\/invite\/VvT96V53YA\" rel=\"noreferrer noopener\" target=\"_blank\">Discord<\/a>&nbsp;||&nbsp;<a href=\"https:\/\/www.linkedin.com\/company\/blockcentercom\/\" rel=\"noreferrer noopener\" target=\"_blank\">Linkedin<\/a><\/p>\n<!-- \/wp:paragraph -->","post_title":"Alpha Guilty is partnering with Blockchain Center to launch new projects","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"alpha-guilty-is-partnering-with-blockchain-center-to-launch-new-projects","to_ping":"","pinged":"","post_modified":"2022-12-19 09:43:51","post_modified_gmt":"2022-12-19 09:43:51","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=368","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":878,"post_author":"7","post_date":"2023-01-27 15:26:09","post_date_gmt":"2023-01-27 15:26:09","post_content":"<!-- wp:image {\"id\":879,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/What-is-cryptocurrency-and-how-does-it-work_-1024x576.jpg\" alt=\"\" class=\"wp-image-879\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>The popularity of <strong><a href=\"https:\/\/blog.alphaguilty.io\/why-is-cryptocurrency-the-best-protection-against-inflation\">cryptocurrency<\/a><\/strong> stays steadily high, and the scope of <strong>blockchain technology<\/strong> is only expanding. That is why a lot of users started to get actively involved in <strong>cryptocurrency<\/strong>, for a long time they monitor the value of coins, studying the factors that can affect the price of <strong>crypto assets<\/strong> today. Of course, to <strong>invest in cryptocurrency<\/strong> and make more profit out of it.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Even though <strong><a href=\"https:\/\/blog.alphaguilty.io\/why-is-cryptocurrency-the-best-protection-against-inflation\">cryptocurrency<\/a><\/strong> has been around for a long time, it wasn't talked about en masse until recently, when <strong>Bitcoin <\/strong>skyrocketed in value. Some people are even considering buying a course to learn how to handle <strong>crypto <\/strong>and that's a good idea. The problem is that really good classes about <strong>cryptocurrency work<\/strong> are quite expensive for a beginner, so you can learn this one on your own with our material.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today we will help you understand the basics of <strong><a href=\"https:\/\/blog.alphaguilty.io\/why-is-cryptocurrency-the-best-protection-against-inflation\">cryptocurrency<\/a><\/strong>, what <strong>blockchain technology <\/strong>is that <strong>crypto <\/strong>is based on, and why types of cryptocurrency are so demanded and expensive. We will talk not only about well-known <strong>cryptocurrencies <\/strong>like <strong>Bitcoin <\/strong>or <strong>Ethereum <\/strong>but also some other <strong>crypto<\/strong>. Not only newbies but also more advanced crypto enthusiasts will find useful information here.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":882,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0.jpg\" alt=\"\" class=\"wp-image-882\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>Starting with the basics: what is <strong>cryptocurrency<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>To discuss the more complex aspects of <strong>crypto<\/strong>, it's best to start with the basics, so newcomers will get up to speed more quickly. So, <strong><a href=\"https:\/\/blog.alphaguilty.io\/why-is-cryptocurrency-the-best-protection-against-inflation\">cryptocurrency<\/a> is a digital<\/strong> asset and a <strong>decentralized <\/strong>means of payment that exists only on the network. <strong>Cryptocurrency<\/strong> has no paper expression, and <strong>crypto <\/strong>value does not depend on the state.\u00a0<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>What does it mean to be <strong>decentralized<\/strong>? This is the main distinguishing feature of <strong>crypto<\/strong>. In this way, a <strong>decentralized <\/strong>asset means that <strong>cryptocurrencies <\/strong>do not have a common, defined storage location like other information data.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are at least a thousand <strong>cryptocurrencies<\/strong>, but the most well-known are <strong>Bitcoin <\/strong>and <strong>Ethereum<\/strong>. The unit of <strong><a href=\"https:\/\/blog.alphaguilty.io\/why-is-cryptocurrency-the-best-protection-against-inflation\">cryptocurrency<\/a> <\/strong>is a code that appears as a score of machine mathematical calculations. To summarize all this info about <strong>cryptocurrency work,<\/strong> let's highlight the following features of all <strong>crypto assets<\/strong>:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li><strong>Decentralized <\/strong>aspect and lack of control. Digital <strong>ledger transaction <\/strong>information is kept on a lot of servers around the world. This <strong>ledger <\/strong>and <strong>transactions <\/strong>are equally accessible to all participants.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The anonymity of <strong>crypto<\/strong>. Despite the openness of digital <strong>ledger transaction <\/strong>information, users see only each other's <strong>wallet <\/strong>numbers. The owner of the <strong>crypto wallet <\/strong>remains unknown.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Transaction <\/strong>irreversibility. Recording a <strong>transaction <\/strong>in a block leads to a change in the whole chain. That's why you can't undo the transaction.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Absence of physical form. All <strong>cryptocurrency <\/strong>images or photos of wallets with <strong>Bitcoin <\/strong>are nothing more than symbolism. This means that <strong>cryptocurrency <\/strong>is a code, you can't touch <strong>Bitcoin <\/strong>and all <strong>crypto <\/strong>or put it in your pocket. And a <strong>cryptocurrency wallet <\/strong>is a storage of information online or on a device, a digital wallet has nothing in common with the usual <strong>wallet<\/strong>.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Despite this, <strong>cryptocurrency<\/strong>, like traditional money, has an issue. Using <strong>Bitcoin <\/strong>for an instance, there is a total number of possible coins in the <strong>Bitcoin <\/strong>source code. Issuance affects<strong> cryptocurrency prices<\/strong>: if a new batch of coins is released, the worth of a unit usually falls.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What about the <strong>market cap <\/strong>for <strong>cryptocurrency<\/strong>?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>If we are talking about <strong>cryptocurrency <\/strong>(<strong>Bitcoin<\/strong> or any other), the <strong>market cap <\/strong>means the total worth of all issued coins. It is important to note that this is one of the points for evaluating a <strong>cryptocurrency's<\/strong> stability. You need to know that crypto with a larger <strong>market cap <\/strong>ratio will be a more stable deposit and less subject to <strong>market <\/strong>fluctuations.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What is <strong>blockchain technology<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Crypto <\/strong>is considered a <strong>decentralized <\/strong>asset, so <strong>cryptocurrency transaction <\/strong>info is kept on thousands of devices. It is combined into blocks, then into chains, which are defended by crypto keys, hence the name of the technology. The entire chain will be modified if you change the info in any of the blocks.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Crypto <\/strong>is not controlled by governments or banks. It makes the processing of <strong>cryptocurrency transactions<\/strong> independent, transparent to all participants in the network of devices in the chain, and anonymous simultaneously. In simple terms, <strong>cryptocurrencies <\/strong>like <strong>Bitcoin <\/strong>or <strong>Ethereum work <\/strong>as a replacement for banks and traditional payment systems, taking financial transactions out of the control of states and corporations. So, let's a recap:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>With this technology, <strong>transaction <\/strong>records of network participants are encoded, distributed to other users, and formed into linked blocks. It is like a branch of the bank on your computer.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>If someone tries to make changes to get <strong>crypto <\/strong>in an unfair way, such as rewriting an existing <strong>transaction <\/strong>or creating a new one without the consent of the other participants, that's not <strong>work<\/strong>. The system will compare that information with other bases and lock <strong>transactions<\/strong>.&nbsp;<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Theoretically, an ordinary data cloud can be hacked, and with <strong>cryptocurrency<\/strong>, this problem could also arise. Each participant of this system has info on all <strong>transactions <\/strong>made with <strong>crypto <\/strong>kept on the user's computer. Indicators are automatically checked against each other with special schemes and updated. The basis of <strong>cryptocurrency <\/strong>as <strong>Bitcoin <\/strong>is cryptography (a reliable way to encrypt any data). Hacking an encrypted system is very difficult.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":884,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0.png\" alt=\"\" class=\"wp-image-884\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>This technology also allows fast and commission-free processing of financial operations. The <strong>work <\/strong>speeds of many modern <strong>cryptocurrencies <\/strong>are close to or exceed those of the traditional payment systems we use in our daily lives. In simple words, what <strong>decentralized cryptocurrency <\/strong>is for can be described as financial operations that are fast, unmediated, and anonymous.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How does <strong>cryptocurrency work<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>So, how does <strong>cryptocurrency work<\/strong>? We have already figured out that it is a unit of account of a decentralized payment system. It is a record of <strong>transactions <\/strong>that are kept on devices around the world. This <strong>transaction <\/strong>information is packaged into blocks, protected by cryptographic keys, and combined into a chain.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the creation of <strong>crypto<\/strong>, particularly <strong>Bitcoin<\/strong>, a mechanism such as <strong>proof of work<\/strong> was first invented. Let's discuss <strong>proof of work<\/strong> in more detail because it is very important for understanding the way crypto works:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Thanks to <strong>proof of work<\/strong>, a new block is added to the chain, <strong>transactions <\/strong>are confirmed and a single version of the registry is validated.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Proof of work<\/strong> provides the economic incentive that has become the basis to <strong>mine Bitcoin <\/strong>and another crypto.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The essence of<strong> proof of work<\/strong> comes down to the ability to quickly and easily verify results and the need to perform complicated time-consuming tasks.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>These tasks are not originally intended for people, their solution by a machine is always achievable in a finite time, but requires a lot of computing power. At the same time, the verification of the obtained solution requires much fewer resources and time.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The need to solve the issue of how <strong>transactions <\/strong>will be approved and provide protection against abuse led to the emergence of another mechanism, the proof of <strong>stake<\/strong>. In simple terms, it is a set of rules by which network members agree on exactly how <strong>transactions <\/strong>can be approved and included in new blocks.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, there is also a proof of <strong>stake <\/strong>mechanism based on which various <strong>crypto <\/strong>and platforms, such as <strong>Ethereum<\/strong>, are built. According to the original concept of proof of <strong>stake<\/strong>, the right to manage the chain is given to all its participants according to the share of <strong>crypto <\/strong>they own. The demand for proof of <strong>stake <\/strong>is due to the lack of the need to buy expensive equipment to <strong>mine <\/strong>and the possibility of easy passive earnings (to <strong>stake cryptocurrency<\/strong>).<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In addition to the two well-known proofs, there are several other types. A beginner user should deal with them to understand how crypto works:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Proof of history solves the problem of scaling and transaction processing speed. It is a consensus algorithm that has a built-in timing mechanism - a clock. It allows validators to match time.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>A feature of proof of capacity, is that the chain requires free hard drive space, which is provided by users, who are paid for it. Thanks to this, the developers have achieved a reduction in power consumption.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Proof of space is based on a way of expressing interest in a service by allocating a non-trivial amount of memory or disk space to solve a problem presented by the service provider.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Proof of spacetime allows network participants to prove that they have spent a space\/time resource. In turn, they have allocated storage capacity to the network over a period of time.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>According to the proof of burn, the user who burned some of the coins has the right to join the block and receive the reward.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Proof of selection helps crypto fight confirmation bias by proving the correctness of token mining in the process of confirming that specified requirements are complete.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Proof of participation is that all decisions that are made are distributed evenly among all members of the network. This leads to better decentralization.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The essence of proof of activity is that mining is divided between two groups, one using proof of work and the other using proof of stake.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>It is very important for beginners in the crypto field to get informed about a lot of proofs, because miners are constantly competing for coins.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What does it mean to <strong>mine <\/strong>a <strong>cryptocurrency<\/strong>?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Every person interested in <strong>crypto <\/strong>has heard that it can be <strong>mine<\/strong>. Here everything is very simple \u2013 to <strong>mine <\/strong>digital currency means the process of creating new coins. For a certain number of processed operations in the network, the miner gets paid in coins. This process requires powerful computing equipment because of the large number of operations performed and the high complexity of calculations. There are several ways to <strong>mine cryptocurrency<\/strong>:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>It was more relevant to <strong>mine <\/strong>on CPUs in the early days of the first <strong>cryptocurrencies<\/strong>. However, now CPU power is not enough to process data on transactions stored in long chains. And this type of mining is considered only for <strong>crypto <\/strong>\u2013 newcomers to the market, not having a great history of operations.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Any digital currency can be released on the GPU, but some are better suited because they have an algorithm more compatible with the GPU. Older algorithms are not ground up to work with GPUs, so they can take a long time to process. Market flagships such as <strong>Bitcoin <\/strong>or <strong>Ethereum<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Only the miner who is the first to process the operation receives the reward, so there was a need for specialized equipment. This is the ASIC \u2013 a chip that is customized to calculate a specific algorithm for each digital currency. For example, SHA-256 for <strong>Bitcoin <\/strong>and Ethash for <strong>Ethereum<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>There is also cloud mining, where large, industrial miners on the <strong>market <\/strong>rent out some of their equipment to online users. Some investors have even started to set up large enterprises (farms) in favorable locations for this purpose.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:image {\"id\":885,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0-1.jpg\" alt=\"\" class=\"wp-image-885\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Today you can even mine in your browser or on your smartphone. Some programs allow you to work simultaneously on the CPU and GPU. It is also necessary to set up a <strong>wallet<\/strong>, which will receive the <strong>cryptocurrency<\/strong>. Thus, the process of <strong>crypto mine <\/strong>requires expensive equipment, and its cost is constantly growing, and today it can amount to tens of thousands of dollars. In addition, such equipment consumes a lot of electricity to work and requires additional cooling of the system.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Is <strong>cryptocurrency <\/strong>safe?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The high level of protection is because the information in each block is encrypted, and the blocks are linked together in a chain. It takes too much power to hack the system, because, for the sake of one cell of information, you would have to change the encryption of all the others. Other features guarantee safety:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Unique addresses are used to transfer funds.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Operations are open and transparent, but it is impossible to link the data to a specific person.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Operations are instantaneous and cannot be intercepted.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The authenticity of addresses is verified by encryption keys.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>There are public and private keys. The public key is the address of the user's electronic purse, it is in the public domain. A private key is a cipher known only to the owner of the <strong>wallet<\/strong>. The keys work like this: one user wants to send a digital asset to another and encrypts it with the public key, and the recipient uses the private key to receive it.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Are there any associated risks?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The <strong>security <\/strong>of digital assets remains a hot topic in the <strong>market<\/strong>. Despite the increasing number and diversity of projects using the technology on which <strong>crypto <\/strong>is based, it carries risks. The wrong assessment can lead to the most serious consequences, both for the average user and for a large company. That is why it is worth talking about the <strong>security <\/strong>of <strong>crypto <\/strong>and possible risks:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>In particular, the vulnerabilities of this ecosystem include the lack of recoverability of stolen funds, the partial or complete anonymity of users, and the lack of legal regulations to protect their info.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Every time you transfer digital currency, you need to put in a digital signature, there is a password for this. If it is stolen, then it is possible to dispose of the money in the name of the owner. Thus, a person can lose a lot of money because of a stolen cryptographic key.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>As a rule, the attackers targeted the encryption keys of sensitive user data. Once in their possession, they gain access to cryptocurrency management and then steal it. Back to the issue of <strong>security<\/strong>, it's hard to answer the question of which digital currency is the safest, but most likely it's <strong>Bitcoin<\/strong>. A large number of developers work with it, so it would take a huge amount of resources to organize such an attack.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":886,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0-1.png\" alt=\"\" class=\"wp-image-886\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Should I use a <strong>Ledger wallet<\/strong>?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>But is there a reliable way to increase the <strong>security <\/strong>of digital currency? Of course, you can use a <strong>Ledger wallet <\/strong>for higher <strong>security<\/strong>, it's a great way to protect your assets. Such devices for storing keys and other digital currency are a kind of flash drive. There are other brands of such <strong>wallets<\/strong>, but this one is now the most popular among users. The developers have also provided for the possibility of full information recovery in the case of loss of the device.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If you are planning to get serious about crypto and keep large amounts of assets in your <strong>wallet<\/strong>, then be sure to consider getting a <strong>wallet <\/strong>as a stand-alone storage medium. Hardware <strong>wallet <\/strong>devices are the type that provides high reliability when saving personal keys. They are completely isolated from other systems and local or global networks. This is what makes such <strong>wallets <\/strong>invulnerable to hacking and accidental loss of information.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How can you <strong>use cryptocurrency<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It was assumed that you can use this digital asset not only on special <strong>exchange <\/strong>but also to buy anything for it: from household items to expensive real estate. However, despite the growing popularity of the use, large operations with <strong>Bitcoin <\/strong>or <strong>Ethereum <\/strong>are made quite rarely \u2013 but in ordinary online stores this payment option is found more and more often, which cannot but please users. Let's consider where crypto is needed and for what purposes you can successfully use it:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Payment for goods and services mainly in online\/physical stores: today you can pay with crypto in even real-life outlets, such as some coffee shops.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Exchange <\/strong>for various things and benefits: the owner of a store, after receiving payment in crypto, can convert it into the national currency. The <strong>exchange <\/strong>of crypto for goods and services is not common everywhere but is gaining momentum.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Long-term investment: the rate of digital currencies grows in long-term dynamics, so they can be considered a great investment. So, crypto attracts investors with high returns on deposits.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Earnings on <strong>exchange <\/strong>rate differences: knowledge of the <strong>cryptocurrency market<\/strong> and analytical skills allow you to buy and sell crypto in time and at a profit.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The need to store money safely: these are amounts that will not be affected by standard economic processes and crises.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Now crypto is to some extent integrated into the global economy \u2013 it is widely used to pay for various operations, and states and major banks are beginning to interact with this asset.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is also worth mentioning that prices on the crypto <strong>market <\/strong>are an easy object of speculation. The variability in the worth of digital money creates a difference in <strong>exchange <\/strong>rates. Advanced traders use this difference to make money on<strong> cryptocurrency exchanges<\/strong>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":887,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0-2.jpg\" alt=\"\" class=\"wp-image-887\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>Why are there so many kinds of cryptocurrency?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Differences in networks create a large number of coins. The <strong>Bitcoin <\/strong>blockchain is very slow, it is difficult to scale, and operations can be both very cheap and very expensive. <strong>Ethereum <\/strong>has it faster, but because of its great popularity, this currency has also faced a bandwidth problem, which has led to a dramatic increase in the price of operations.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In other words, anyone can make a token on some network. Making a new network, on the other hand, is not an easy task. People want fast <strong>transactions<\/strong>, and almost for free. That's why programmers create faster and more scalable chains, nobody wants to wait for a long time when his operation with a huge commission is confirmed. At the moment, there are a huge number of networks. For the average user, they differ only in the cost of operations.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Another good reason why there are so many types of crypto is that anyone can create it as long as they have new developments. There is no regulatory body here to decide which coins can be produced and which cannot. Let's take a look at some types of crypto:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li><strong>Decentralized<\/strong>. These are cryptocurrencies that are mined. For example, <strong>Bitcoin<\/strong>, <strong>Ethereum<\/strong>, Zilliqa, and Elastos.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Pseudo-decentralized. The issue and turnover of such currencies are controlled by a closed group of persons. It is impossible to mine this asset. Such crypto includes <strong>Bitcoin <\/strong>Cash, Ripple, and TRON.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Stablecoins. The value of a such currency is tied to some value, less often to another crypto, so its worth changes more often than other currencies. Gemini Dollar is equal to the USD, while DigixDAO is equal to a gram of gold.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Judging by the market, the number of scams exceeds the number of normal coins by several times. Behind every coin, there must always be technology and an idea. One way or another, the purchase of any crypto has the sense to support the idea of its developer.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":888,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/pasted-image-0-3.jpg\" alt=\"\" class=\"wp-image-888\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>For instance, the Dogecoin project has always been surrounded by a lot of skepticism, and its creators themselves called it a joke. Nevertheless, thanks to the rapid development of the crypto sphere and active community, the project is not only at the top by capitalization, but it is also one of the most mentioned in the media and social networks.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How can you <strong>buy cryptocurrency<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Before you can make money from crypto, you need to acquire it. There are several ways to do this. Above we have already mentioned mining \u2013 calculating crypto keys for the network for a fee. This is a good way, but too expensive and time-consuming for beginners. It is much easier to buy crypto for traditional money. There are several places to buy and sell crypto:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li><strong>\u0421ryptocurrency exchanges<\/strong> often have quite high commissions because of the large number of intermediaries, but there are a lot of tools for trading and earning. Among the largest <strong>exchanges<\/strong>, today are Coinbase, Kraken, and Binance. When choosing, it is better to be guided by the quality of support, ease of deposit, and withdrawal.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Platforms where sellers and buyers publish their ads. They ensure the safety of operations by blocking funds on the buyer's account until the seller confirms that the deal took place.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Online <strong>exchange <\/strong>services are fast, the rate is less floating than on <strong>cryptocurrency exchange<\/strong>, and commissions are small. It is important to choose carefully because there are a lot of fraudsters on the network. Do not trust too favorable exchange rates or suspiciously small commissions.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>You can use custodial wallets with fiat topups (like Coinbase or Kraken). In addition, these wallets have certain advantages, such as less user responsibility for private key control.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>There are also crypto trading TG bots like Cornix or TradeSantaBot (this is the is soft that connects to your account to help you make deals).<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>It is also worth mentioning the <strong>portfolio<\/strong>. It is all crypto collection, that a person has. Keeping track of your portfolio is quite difficult, especially if your assets are not in the same place. In that case, it is better to use a special tracker like CoinStats.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>How do I choose <strong>crypto <\/strong>for my portfolio? This is the main question that both experienced and novice investors are interested in. No one has ever made a fortune in the crypto area by trading futures or buying hot tokens.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are also a lot of pyramids and scams that masquerade as great projects. A lot of newbies trade things they have no idea about. And if they manage to make a short-term profit, that temporary success blinds them. When they lose in a year or another, they do not understand how it happened. To avoid this situation, check the following aspects before purchasing crypto:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>The project behind the coin and where did you learn about it?<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>As a user, what does this coin give you?<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>And what is the capitalization of this project?<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>How much profit do you want to get out of it?<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>If you can not answer these questions when buying cryptocurrency, you just hope that it will grow in value. At a distance, such an approach is guaranteed to bring you losses.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>When you've decided on the crypto you want to buy, it's time to find the right marketplace. If you are just starting in this area, then of course the first option to buy on the stock exchanges will be the best for you.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Crypto <strong>exchange <\/strong>working<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The time when trading on <strong>exchanges <\/strong>was available only to a narrow circle of people has long been history. Today, anyone can become a crypto trader, regardless of the amount of initial capital. Now <strong>exchange <\/strong>trading is available to most users of the network. To become a crypto pro, it is fundamental to understand how such <strong>exchanges <\/strong>operate.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, crypto <strong>exchange <\/strong>is a platform where one digital currency is traded and exchanged for another. In addition to mining (the original method of creating crypto) <strong>exchanges <\/strong>are considered one of the ways to obtain them.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Each member of the <strong>exchange <\/strong>has the right to perform operations related to the analysis of bets, and sell and exchange digital assets for real money. There are resources where users can exchange crypto for real money and platforms that only allow the <strong>exchange <\/strong>of digital assets for another crypto.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>When analyzing the activities of exchanges, we can distinguish two areas \u2013 trading and exchange. Some users even store their assets on such resources, using them as a <strong>wallet<\/strong>. However, experts advise against doing so, because exchanges, although rare, are sent to scams. The main function of the exchange is the sale of currency pairs, bringing enormous income to traders.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>What does the price of crypto on the exchange depend on? Here are a few things:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>The most important point for forming the price of a cryptocurrency coin is demand. The more users are interested in buying for one reason or another, the higher their value.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Also, the price of mining equipment, the overall complexity of its mining, and how widely a coin is distributed on popular exchanges affect the quotation of the digital currency.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Separately, it is worth noting the hard-to-predict factors that make investing in digital assets quite risky \u2013 political reasons, the influence of media, or crypto whales (users who own a large percentage of the digital asset).<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Due to the high level of volatility, crypto can be used as a speculative tool, allowing you to maximize your profits. This method is similar to the trading that takes place on conventional currency exchanges. In general, online earnings through cryptocurrency can be really big. This market environment attracts a large number of investments, fueling interest in virtual currencies. A <strong>cryptocurrency exchange<\/strong> allows trading and, importantly, earning.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, you don't have to be an expert in crypto exchanges to make a profit. You can also make a fortune through speculation. To understand that you are only one step away from making a large income, you only need to observe how quickly the rate of online crypto changes.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What is the future of cryptocurrency?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Because of the significant decline in the crypto market capitalization last year, the question of the future of such a digital asset has become particularly relevant. It has also provided new arguments to those people who think crypto is a massive scam and a huge bubble. Optimists, on the other hand, remind us that such an adjustment is not the first.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The <strong>crypto <\/strong>market is relatively young and poorly regulated at the legal level in most states, with a high concentration of power in the hands of whales and a significant number of inexperienced users. All of this makes it extremely manipulative and sensitive to situational factors. The result is high fluctuations in the exchange rate.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Nevertheless, crypto is becoming more and more tangibly embedded in everyday life. This is especially evident in the increasing number of outlets and services where it is possible to pay with digital assets. Famous global brands are joining them. Even popular payment systems are also actively integrating crypto. Also, the number of users who buy digital currency and make money on <strong>cryptocurrency exchange<\/strong> is constantly increasing.So does <strong>crypto <\/strong>have a future? Definitely yes, even despite the pessimistic sentiments about a bubble that will burst sooner or later. This market is developing dynamically, and the interest in crypto both investors and ordinary users is only growing. Thanks to advances in technology, the security of operations with such a digital asset will only increase. Thus, claims that <strong>crypto <\/strong>is just another bubble are not entirely valid.<\/p>\n<!-- \/wp:paragraph -->","post_title":"What is a cryptocurrency and how does it work?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"what-is-a-cryptocurrency-and-how-does-it-work","to_ping":"","pinged":"","post_modified":"2023-02-28 13:56:38","post_modified_gmt":"2023-02-28 13:56:38","post_content_filtered":"","post_parent":0,"guid":"http:\/\/78.47.81.216\/?p=878","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":763,"post_author":"7","post_date":"2023-01-06 21:37:39","post_date_gmt":"2023-01-06 21:37:39","post_content":"<!-- wp:image {\"id\":774,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/Ultimate_Guide_About_NFT_\u2013_Information_for_Beginners_and_Advanced-1024x576.jpg\" alt=\"\" class=\"wp-image-774\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>We've specially prepared an ultimate <strong>guide <\/strong>for you, so you can <strong>learn <\/strong>everything you need to understand about NFT in one topic. If you are a <strong>beginner <\/strong>in the field of <a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">crypto<\/a> and want to learn a lot more about <strong>NFT work<\/strong>, this stuff is for you.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The <strong>demand for NFTs remains<\/strong> at a high level, even though the emergence of the <strong>NFT <\/strong>bubble causes controversy among <strong><a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\">crypto<\/a> <\/strong>enthusiasts. Many people are attracted by low commissions, the speed of transactions, and anonymity, which guarantees safe transfers. NFTs also provide a great opportunity to make money from passive income.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":764,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image.png\" alt=\"\" class=\"wp-image-764\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>So, in this field, it is impossible not to remember tokens, <strong>NFT<\/strong>, and <strong>blockchain technology<\/strong> features. Concepts of <strong>cryptocurrencies and NFTs<\/strong> often go in the same area, and novice<a href=\"https:\/\/blog.alphaguilty.io\/what-is-a-cryptocurrency-and-how-does-it-work\"> crypto<\/a> users can get confused about them.<strong> NFT is a digital asset<\/strong> that is valuable nowadays and we will talk about it in more detail. Now we go deep into <strong>non-fungible tokens<\/strong> topic. So, we will <strong>explain <\/strong>why they are considered so <strong>valuable<\/strong>. Before you <strong>learn <\/strong>something drastically new about <strong>NFT<\/strong>, let's start with the basics.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What are <strong>NFT <\/strong>and <strong>Blockchain Technology<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the last year and a half, NFTs have not only become a popular topic of discussion in the community but have also allowed <strong>people <\/strong>to <strong>make <\/strong>significant money, giving a second wind to digital art, which we will talk more about next.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>So, <strong>NFT <\/strong>assigns the property of a digital object to a single user and confirms the uniqueness of such a right of property. The definition of such <strong>tokens <\/strong>comes from the cryptocurrency world. <strong>NFTs are created<\/strong> on a special technology that records data in digital blocks in a certain order. This technology is called blockchain and it has several features we need to explain:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Such information cannot be deleted or changed.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The blocks are stored on different devices around the world, not on a single server.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>It is virtually impossible to hack a digital object with this technology.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>In other words, <strong>NFT <\/strong>is digital property: a picture, an audio recording, a video, a text file, or another <strong>piece of art<\/strong>. We can embed a digital code inside this object, which will indicate its uniqueness. Of course, it is <strong>digital art<\/strong> that most often applies this technology. NFTs are <strong>collectible <\/strong>things, so many <strong>crypto <\/strong>enthusiasts <strong>invest <\/strong>in them with the expectation of getting a good money return in the future.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":765,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-1.png\" alt=\"\" class=\"wp-image-765\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Even if other <strong>people <\/strong>download your file, they will have a different, unoriginal <strong>token<\/strong>. This provides a unique opportunity for <strong>creators to post their art<\/strong> digitally and make big money. That is, with the help of <strong>NFT <\/strong>technology it is easy to distinguish the original from the fake. So, let's recap:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li><strong>NFT <\/strong>is attached to all sorts of objects, most commonly digital art.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Such a <strong>token <\/strong>acts as a certificate of uniqueness for an asset, for example, a piece of art or armor in a game.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>This certificate is made up of small pieces of code blocks and is therefore part of a chain, hence the name of the technology.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p><strong>NFT <\/strong>technology is not perfect, there are many little-known features and pitfalls. For example, the purchase of a <strong>token <\/strong>does not always mean a full transfer of rights. These rights are prescribed directly in the <strong>token <\/strong>- it can be a transfer of copyright, or the right only to use, without the possibility of profit or resale.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Non-Fungible Token<\/strong>: What is This?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Once you learn the basic definition of <strong>NFT<\/strong>, we should elaborate on the meaning of the acronym. If you are a <strong>beginner <\/strong>and didn't <strong>learn <\/strong>sooner, the <strong>NFT <\/strong>acronym <strong>meaning <\/strong>is a <strong>non-fungible token<\/strong>, then we will explain. A <strong>token <\/strong>is a code that contains information about an object. To put it very simply and summarize all the previous information, <strong>NFT stands<\/strong> as a token issued in a single copy. In the case of <strong>non-fungible tokens<\/strong>, it might work like this:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>An artist has painted a picture and decided to sell it digitally with a <strong>non-fungible token<\/strong> on a marketplace.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The painter issues a <strong>non-fungible token<\/strong> for that painting, to which the painting file itself is attached.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>You buy a <strong>non-fungible token<\/strong>, and that means you now own the painting, there is no second such <strong>token<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>A record of this purchase appears in the chain, which cannot be faked, altered, or deleted, so your ownership of the painting is secure.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>To further increase the security and integrity of transactions, special smart contracts are used when selling <strong>non-fungible tokens<\/strong>. This is a computer protocol in the system that allows the contract terms between the parties to be enforced automatically. The contract spells out certain conditions that one party to the contract must meet, and only then will it receive the asset. For example, the <strong>non-fungible token<\/strong> is automatically transferred to the buyer after the payment for it reaches the seller's account.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Probably the most important advantage of <strong>NFT <\/strong>is the inalienability of ownership of the digital object. No matter how many times <strong>people <\/strong>download your picture, it will be yours until you decide to sell ownership of it. Even the opposite, the more users want to get your <strong>token <\/strong>for their purposes, the more valuable it becomes as its recognition and demand for it increase. This is especially evident in digital art.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Let's talk about the <strong>meaning <\/strong>of high demand and popularity. Popularity has the greatest impact on the ability to sell a digital product. For example, an influencer can sell anything and it will sell out of <strong>stock <\/strong>instantly. But a beginning <strong>crypto <\/strong>enthusiast has to promote an <strong>NFT <\/strong>product to sell it and successfully <strong>trade <\/strong>out of <strong>stock<\/strong>, and that's a real problem.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In crypto games, for example, there's no guarantee that after making and pumping your character, you can sell it, as well as there is no guarantee that the developer will not release a more popular character, or even close the project. The <strong>meaning <\/strong>and <strong>use of NFTs<\/strong> are very broad, but to <strong>invest <\/strong>successfully, you have to take into account many features, about this we will talk next.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":766,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/leather-3080553_960_720-1.jpg\" alt=\"\" class=\"wp-image-766\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>How Does <strong>NFT Work<\/strong>: All About NFT Marketplaces and Minting<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This <strong>guide <\/strong>wouldn't be complete if we didn't talk in detail about how <strong>NFT <\/strong>works. There are many platforms and marketplaces where you can place your tokens. Some specialize in a particular area, <strong>like art <\/strong>or audio files.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If you are interested in creating NFT marketplaces, then you may check dedicated to this topic article in our blog. This is a great chance to learn all the intricacies of the process, to assess the costs and risks. Be sure to check out the following articles on our blog!&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The same marketplaces are used to <strong>make <\/strong>and <strong>trade <\/strong>such <strong>tokens<\/strong>. The owner uploads the content to the platform and puts a price. The <strong>NFT <\/strong>is created in one of the blockchain formats that platforms offer: ERC-721, ERC-1155, ERC-998, EIP-2309, and others. Here are also a few examples of the <strong>largest NFT marketplaces<\/strong> that are used to place, create and <strong>trade <\/strong>such tokens:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>OpenSea. Probably the <strong>biggest <\/strong>and the best <strong>NFT market<\/strong> for buying and trading tokens. Original Cryptopunks and land on Decentraland can be bought on this marketplace. It also allows for cross-platform secondary selling.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Super Rare. This is a marketplace and decentralized social platform that trades unique digital art. Unlike most NFT marketplaces, SuperRare sells only single-issue and the best items - hence the name.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Rarible. On this platform, you can also <strong>issue and sell NFTs<\/strong>. Paintings, photos, audio files, games, digital universes, and even memes are all sold and bought on the marketplace.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>NBA Top Shot. This is the official affiliate that offers the most interesting moments of all NFT basketball games for purchase.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>The NFT author has the right to limit the number of copies and receive income from each <strong>trade <\/strong>(sometimes this happens automatically). To <a href=\"https:\/\/blog.alphaguilty.io\/how-to-create-an-nft-easy-to-learn-guide\"><strong>make <\/strong>an <strong>NFT<\/strong><\/a>, you need a crypto wallet and a digital content file, we will describe in more detail below and give an <strong>example of how<\/strong> it works:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Users who want to <a href=\"https:\/\/blog.alphaguilty.io\/how-to-create-an-nft-easy-to-learn-guide\"><strong>make <\/strong>an <strong>NFT<\/strong><\/a>, upload content to the best platform, and give this file a name and a description.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>NFT is created by converting digital content (whether it's a video, song, or picture) into a chain record.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Once an <strong>NFT <\/strong>is finished, it can be put up for <strong>NFT marketplaces<\/strong>. The creator of an NFT can limit the number of copies of the original and receive income from each sale.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The site will charge the user a fee for the creation of the NFT either immediately after the token appears or at the time of its <strong>trade<\/strong>.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Anyone who wishes to buy an <strong>online NFT<\/strong> claims it from the author and receives a special certificate with unique data after the funds have been transferred. Users can store the asset on a device \u2013 a smartphone or computer. The owner has the right to give public keys to other users when copying to confirm the authenticity of the object. The token remains in perpetual storage. All users besides the buyer can view and download it, but only the buyer has the certificate.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, digital art tokens work as collector items. They are bought by <strong>people <\/strong>who want to <strong>invest <\/strong>in the field of crypto, <strong>make <\/strong>money on resale or gain passive income, which we will talk more about today. Many NFT projects have built <strong>communities <\/strong>of artists, musicians, and just creatives or crypto enthusiasts who want to collect <strong>NFT <\/strong>and <strong>invest <\/strong>in it.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Examples of <strong>NFT<\/strong><\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Now almost everything is sold in the form of NFTs, from personal photos to articles. Now we'll give you a few popular examples, and then we'll talk about them in a little more detail:&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Since 2017, these technologies have been used in the game CryptoKitties, where you can breed, <strong>trade<\/strong>, and sell unique cats. One of the most expensive drawn cats named Dragon was bought for about $170,000. The picture was part of that game.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Other popular NFTs today are works of art. An <strong>NFT <\/strong>by digital artist Beeple sold at auction for more than $69 million, making him one of the three most expensive living artists.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>NFT <\/strong>isn't just about art, it's about other areas. For example, the first tweet by the owner of the social network Twitter sold for nearly $3 million. The New York Times article about NFT sold as a token for $500,000. And basketball fans can collect video clips of the <strong>best <\/strong>moments of NBA games by buying them from the official NBA Top Shot site.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>One of the unique cards depicts Homer Simpson but in the style of the Pepe The Frog meme. The price of her purchase was about $39,000, and in 2021 the collector was able to sell this NFT for $312,000 and was excellent on this earned, so the idea to <strong>invest <\/strong>in Pepe was quite successful.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>If you are interested in the CryptoKitties story, in the first stage, about 100 cats were put into this game, and they started the whole genealogical chain. New kittens appear as a result of interbreeding and are registered as NFTs, confirming the exclusivity of each one.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":767,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-2.png\" alt=\"\" class=\"wp-image-767\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>For painters, <strong>NFT <\/strong>is a handy tool to confirm the authenticity of a work of art digitally. After all, the concept of forgery in digital art is just beginning to take shape, and previously there was no way to confirm the originality of a copy. Now, if there is only one <strong>NFT<\/strong>, it means that all other copies can be considered fakes.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For collectors, it is of interest to buy a certificate of property of the original content and be able to resell it for even more if the price of the work increases over time. Original meme images have also begun to be sold in the form of NFTs. As we said before, notable examples of collecting in this area include images from a collection of rare memes featuring Pepe the Frog.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>You can also go to one of the <strong>best <\/strong>marketplaces yourself and just <strong>browse NFT collections<\/strong>. We assure you, you will find a lot of interesting examples of how unusual art becomes expensive NFTs. The most expensive and popular collections once started with little startups, so some owners of such tokens are very lucky to have once found a hidden gem.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What NFTs are Used for Now?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are many uses for tokens and <strong>assuming the demand for NFTs<\/strong> increases, this list will only expand. How NFTs are used and applied is becoming more and more innovative. Here are a few common options today:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Ownership in the virtual world. Of course, the Decentraland platform is a good example here. Here NFTs represent plots of land in different areas of the virtual world of the game. The owners of this land can develop their plots and get a good profit from them (to rent or use for advertising).<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Domain names. NFTs can also be used as domains that do not depend on anyone but the owner. The page address is created based on a binding NFT certificate and the domain is assigned a cryptographic address, like any token. Therefore, such a thing is unrepeatable.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>In-game items. Tokens can serve as in-game items on the type of weapons, armor, vehicles, and characters. Such NFTs not only give the player full ownership of these resources, but also provide various ways to earn <strong>money <\/strong>by buying, selling, and exchanging them on the <strong>marketplace<\/strong>. There are whole universes built on <strong>NFT<\/strong>.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Collectible items. At the moment, many NFTs are collectibles, which can be artwork, game items, or tokens from popular projects. Many celebrities and wealthy people, even those not related to cryptocurrencies, have become collectors of valuable NFTs.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Digital Art<\/strong>. NFTs can also represent certain creations of art that have been transferred to the <strong>crypto <\/strong>world and are now represented by an exclusive token. So, the fact of owning an NFT confirms ownership of the artwork associated with it. You can find more than one <strong>marketplace that allows artists<\/strong> to create and sell<strong> digital art.<\/strong><\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Regardless of the many variations in the use of NFT, most people view this technology as an investment or collector's item, let's take a closer look.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>NFT <\/strong>as an Investment<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>You can <strong>make money <\/strong>on NFT as an investor by trading and staking. Trading works very simply: buy cheaper and <strong>sell <\/strong>dearer. Stacking works on the principle of contribution \u2013 pledged tokens bring a small but stable passive income.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There is also the concept of yield <strong>farming<\/strong>, which implies placing crypto assets to generate high rewards or income in additional cryptocurrency. You might also consider investing in NFT <strong>stocks<\/strong>. You can buy <strong>stock <\/strong>in companies that are involved in the NFT field. You can read more about yield farming in <a href=\"https:\/\/blog.alphaguilty.io\/nft-farming\">this article<\/a> in our blog.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Any benefits of investing in NFTs? Some tokens increase in value over time and can be resold at a better price. Also, NFT items are easy to store and impossible to forge. Nevertheless, to work with NFT you need to know how to see trends \u2013 you can incorrectly predict the price movement and lose a lot of money.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":768,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-3.png\" alt=\"\" class=\"wp-image-768\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>NFT as a Collecting Activity<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When people talk about NFT, they often mean <strong>digital art<\/strong>. Technically, anyone can take a photograph or record a video and try to <strong>sell <\/strong>it as an NFT collectible. However, not all objects have real value. It works just like in the real world.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It's important to understand what you're going to collect. You shouldn't buy up everything in the hope that it will work for your <strong>best <\/strong>income. It is better to buy something from a collection created with the support of an influencer. For example, an artist with a large audience. Also increase in value could be a collection produced in collaboration with a well-known artist.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Utility NFTs<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are also <strong>utility <\/strong>NFTs that significantly expand the vision of digital <strong>collectible <\/strong>things, as <strong>token <\/strong>owners can receive real-world privileges. These <strong>utility tokens <\/strong>offer multiple use cases beyond their cost and the digital world. For example, access to a closed <strong>community <\/strong>or club, the ability to unlock bonus content, or premium real-world merch. As you can see, NFTs work not only virtually and with <strong>digital art,<\/strong> but also in the physical environment. In this way, <strong>NFTs can represent<\/strong> anything.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>One of the most relevant applications of such tokens is electronic versions of tickets that give access to exclusive events. Already, some projects are using their service tokens to offer their holders exclusive entry to closed activities.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How to Create NFT<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Of course, you have to decide which file you will use to create the NFT. Beginning crypto enthusiasts most often start with images, that's the easiest way to create a unique work of art. The image mustn't be plagiarized, otherwise, it will not pass the verification on the platform. You can read more about NFT creation in our blog, just follow this <a href=\"https:\/\/blog.alphaguilty.io\/can-you-make-your-own-nft\">link<\/a>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Various <strong>software <\/strong>can be used to create an NFT image, including Photoshop. There is also special <strong>software <\/strong>on the type of NFT Creator, you can try for yourself a few options and choose the <strong>best<\/strong>. If you decide to create a whole project, you also have to take care of the <strong>roadmap <\/strong>\u2013 a list of goals and strategies of the project and justify its prospective value. This is a must if you want to attract as many people as possible.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Are you just starting and want to try to <strong>build <\/strong>your first NFT? Then you need to choose a <strong>marketplace<\/strong>. There will be an opportunity to create one or more NFTs, if you want, for example, to <strong>sell <\/strong>a lot of photos or create an entire collection. Let's take a closer look at the sequence of actions for OpenSea:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>In the first step, all you <strong>need to do is create<\/strong> an account and connect your ETH wallet. After you <strong>create an account<\/strong>, you can add your name, description, and email, and then a picture and logo. And don't forget to verify your email.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>To start creating NFTs, select Create in the upper right corner. After that, a drop-down menu will appear, from which select Submit NFTs. Have a file ready to upload. Then click the button labeled <strong>Create <\/strong>a new collection.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>To create your collection, enter its name, choose a logo and add a short description. The last two points are optional. If you have not yet decided on these parameters, a name for the collection is enough. Click Add New Item. After that, the site will offer to conclude an agreement (no payment is required yet). Accept its terms and go to the next step.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Upload a file with the result of your creativity. <strong>Marketplace <\/strong>supports different formats. There is a chance that authors may find ways to upload larger files, but many <strong>NFTs work<\/strong> better with small videos, songs, or pictures.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Now click Add New Item and agree to another agreement. Add a picture for your piece and specify the number of copies.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>If you add information about properties, levels, statistics, and the number of available duplicates, the system will optimize the search for your token. The <strong>marketplace <\/strong>also gives you the ability to add exclusive content, which will be available for viewing only for you.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As for your file, its uniqueness is ensured by the combination of the object to which it is attached and your identifier in the system or a unique key that signs any token that passes through your account. In fact, it is because of this individual signature that any user can trace the entire path that NFT has taken since its inception and all owners of that certificate.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":769,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-4.png\" alt=\"\" class=\"wp-image-769\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>NFT Marketing: How to Promote NFT<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>NFTs require strong marketing and promotion so that target consumers are aware of their presence and usefulness. Here are some effective ways to do this:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Influencers have not only conquered the NFT market but also demonstrated real results. As a result, marketing by opinion leaders is now one of the most powerful tools for promotion. Harness the full power of influencers and bloggers!<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Draw attention to your project on social media. Be active, join themed communities, leave comments, and communicate. That way you'll get new contacts and more crypto enthusiasts will notice your creativity.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Use SEO marketing tools if you see NFT as a new step to grow your business. You can also use paid advertising and e-commerce, depending on the situation.&nbsp;<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>If you create an NFT, you definitely expect to benefit financially from it, and that is impossible without the right marketing and promotion strategy.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>How <strong>Much <\/strong>Does It Cost?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When it comes to how <strong>much <\/strong>it costs to set up an NFT, it's critical to remember that choosing a different platform can make a huge amount of <strong>cost <\/strong>variance. The main expenses associated with NFTs are gas, account, and listing charges. Some platforms allow you to issue NFTs for no payments but may have a charge for listing tokens for sale. If you want to know how much does it cost to create NFT, just read <a href=\"https:\/\/blog.alphaguilty.io\/how-much-does-it-cost-to-create-an-nft\">this article<\/a> in our blog.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Charges also depend on supply and demand in the network. When demand increases, the charge rises sharply. In addition, NFT creators must take into account the volatility of cryptocurrency prices, which also affects the costs associated with NFT. So how much does it cost to <strong>create <\/strong>such a token? NFT minting prices range from $2 to $400, and higher.&nbsp;<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, here's how the value can change depending on the blockchain chosen:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Ethereum - from $50 to $150.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Solana - $0.01.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Polygon - free (but considering marketplace fees).<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Tezos - from $0.20 to $8.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Cardano - from $0.13 to $1.15.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Zilliqa - from $0.05 to $0.20.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Avalanche - from $0.50 to $1.50.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>However, these costs do not include the commission you will pay to the marketplace. So don't forget to add a fee of between 2.5% and 5%. Also, keep in mind that the ETH option will cost significantly more because of the need of paying for gas.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>At the same time, you can create and post your NFTs for free if you choose the Polygon network, there is no upfront cost. However, the platform does charge service payments, which are deducted from the sale price of the token.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>NFTs Cryptocurrencies: The Main Difference<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Storing information about the owner and transactions involving NFTs in chains makes these tokens similar to other cryptocurrencies. They also pass from one user to another, and access to them is secured. But there are some differences. What is the best way to <strong>explain <\/strong>such a distinction?<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Imagine that you borrowed a bill from an acquaintance. When you pay back the debt you will give back a completely different bill, with a different identifier, but it doesn't matter because they are all of equal value. Now imagine that you rented a car and returned a different car, the same model but in a different color. You would have a problem because a vehicle is an object of value with a unique identifier, and it is non-fungible. This is one of the <strong>best <\/strong>ways to explain the difference between such tokens. So, let's summarize:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>The NFT is unique not because it has special features or great worth, but simply because it was produced in one instance and there is no other like it. One unit of currency in the crypto world is no different from another. At the same time, NFT is named unique for a reason. There are no two NFTs alike: they authenticate digital objects and works of art.&nbsp;<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>An NFT can store data about the uniqueness of a picture, its holder, or the price for which it was purchased. A token does not store the result of someone else's creation: photos, audio files, or pictures, for <strong>example<\/strong>. Only their characteristics are stored in it, which reveals their originality and worth.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>NFTs open the way to a decentralized economy \u2013 an economy without intermediaries. In the future, they could completely change markets like real estate. NFT also solves a lot of copyright problems, which is not unimportant for art creators. Thanks to modern technology, records of the creation and ownership of work remain in the database forever.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Both NFTs and cryptocurrencies are tokens issued on a database with transactions consisting of a successive chain of digital blocks. The difference is that all units of one cryptocurrency are equivalent to each other in properties and value, that is, they are interchangeable. But two NFTs from the same collection are not.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Once an NFT is released, it is impossible to <strong>create <\/strong>a second one exactly like it. Even if someone decides to forge an NFT and copies the picture, it will be seen that the forger was created later and from a different address. But it is quite possible to issue multiple tokens tied to the same object or copies of it. For <strong>example<\/strong>, an artist might issue multiple tokens to one of his paintings and <strong>sell <\/strong>them to different buyers.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":770,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-5.png\" alt=\"\" class=\"wp-image-770\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading -->\n<h2>What Makes an NFT <strong>Valuable<\/strong>?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Of course, the main factor that makes NFT especially valuable is its irreplaceability and originality. Since NFT cannot be copied in its entirety, it can be used to digitally authenticate an asset and verify its authenticity.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Before NFT, the problem of <strong>digital art<\/strong> authenticity was very acute: it was <strong>much <\/strong>easier to <strong>create <\/strong>a copy of a file than a copy of a physical painting. And there was no way to know which of those files was the original. But now NFT technology allows us to check the origin of the assets: it is possible to trace when the asset was first created and to see the whole history of purchases. We should also highlight other factors that determine the value of NFT:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>One must consider how seldom and hard to find a particular NFT is. Examples of high seldom are a unique piece of art from an influencer in the art industry or an NFT created by a celebrity. Another rarity factor is the action that an NFT provides, such as in a game.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>The usefulness of an NFT stems from its actual use. For <strong>example<\/strong>, some NFTs are more than just collectibles because they can be used in video games as virtual lands. Such characteristics give NFTs a value that accumulates over time depending on the demand of the underlying collection.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Some NFTs are tied to real-world objects, which gives them worth in terms of possession of a tangible object that is also backed by an uncontested right of property. In essence, anything can be attached to an NFT to secure thereby right of property, although this does not make the item one-of-a-kind or sought after.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Many people are attracted to such NFTs because of their intrinsic worth as well as proof of property rights. This gives a meaning of exclusivity and determines the worth of an NFT.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How to Buy and <strong>Sell <\/strong>NFTs?<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>To start purchasing NFTs, you must first top up your crypto balance. All popular NFT platforms work in the ETH network, so you need the same wallet. As you may have already guessed, some tokens are only accessible on certain sites.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":771,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-6.png\" alt=\"\" class=\"wp-image-771\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>Some of the <strong>marketplaces <\/strong>are public, anyone can <strong>build <\/strong>any collection, including fakes of other projects. For <strong>example<\/strong>, OpenSea allows this. However, the site moderates content and popular collections that have been verified have a special mark that you should definitely pay attention to. Decide for yourself which investment method suits you <strong>best<\/strong>:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Reselling already popular NFTs. If competent in the analysis of projects and the market. It can be a good way to stable earnings.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Participation in the issue of <strong>tokens <\/strong>in the early stages of launch. The entry price is lower, and the potential earnings are higher, as are the risks.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Want to get NFT for free? Surprisingly, there is such an option, because every day on social networks there are giveaways of tokens for free. If you are not ready to risk money, but you really want to try \u2013 this is a great option. There are also a few tips for beginners in the NFT field:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Spend time studying market trends, and researching the top collections and those that are just gaining traction.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Build <\/strong>or join themed <strong>communities<\/strong>, even beginners can get advice there.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Always study the project in which you plan to invest because many tokens turn out to be nothing, which depreciates after publication.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Do not take the word of those who offer to <strong>invest <\/strong>in tokens, double-check the data about the collection and the creators.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>Buying NFTs to make <strong>money <\/strong>always involves risks. Be prepared to win, but don't despair if you can't make money on the first try. Also, do not invest all the money in one project, only one collection out of hundreds may become popular.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Of course, you should buy these tokens only through trusted exchanges. This is still a young market sphere, so there are not many reputable and safe platforms. It is better to trust only them and not to be tempted to work through little-known platforms.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What About Selling?<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>To sell your NFTs on the platform (OpenSea, for <strong>example<\/strong>), you need to find your tokens on the site, click on them, and then click the Sell button. It will take you to the next page where you can set terms of sale, including the question of whether to bid or sell at a set value. ETH is the most common currency for which you can sell your tokens, but some tokens only support the token on which they were constructed.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":772,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-7.png\" alt=\"\" class=\"wp-image-772\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:paragraph -->\n<p>By clicking the Edit button, you can program license payments and choose which token you would like to receive for the sale. Authors can receive an income every time a token is sold to a new person. This can <strong>create <\/strong>lifetime earnings of passive income for content creators.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Taxes and NFTs<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The issue of taxation and NFT remains one of the most pressing today. NFT is a new kind of digital cryptographic asset. That is why in most countries there is no official guidance on the official taxation of such tokens. In fact, there are virtually no formal tax guidelines that would drastically distinguish NFT from other types of digital assets.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Because each such token is unique and unlike others, NFTs have some qualities similar to real-world collectibles. For this reason, the NFT in terms of taxation may balance somewhere between cryptocurrencies and objects from collections. Also, the tax treatment may differ during the purchase and creation stages of such a token.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, at the point of purchase tax will not be taken from the token, it may be due when NFT buys for crypto, in this case, it is ETH. So why does this happen? Very simple, because crypto is not a common fiat currency. Such payments using cryptocurrency can be compared to selling shares to get funds to buy a piece of art. The sale of such tokens can have various tax consequences. It will matter whether the token was a capital or non-capital asset. Let's summarize this point:<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><!-- wp:list-item -->\n<li>Until official guidance is issued in your country on NFT transactions, you should use the general principles of current tax law.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Such tokens are different from cryptocurrency, so you shouldn't treat them the same way.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>If you are going to conduct large transactions with NFT, it is better to contact a specialist who will explain the complexities of the current law in your country.<\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>You will likely have to pay tax when selling your token. If you are the author, this may be taxed as ordinary income. Also, you may have to pay tax when acquiring such a token because of the sale of the cryptocurrency. Again, it is <strong>best <\/strong>to consult with a specialist additionally.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As for the copyright for NFT owners, it usually happens this way: when selling on, it remains with the creator of the token, but buyers can use the NFT (for example, as a personal avatar). Buyers can also resell tokens or rent them out.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:image {\"id\":773,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full\"><img src=\"http:\/\/78.47.81.216\/wp-content\/uploads\/2023\/01\/image-8.png\" alt=\"\" class=\"wp-image-773\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Legal part of NFTs<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Most countries do not have legislation to regulate cryptocurrencies and digital assets. However, there are no bans on the use of NFTs in the majority of countries. These days, it all depends on the circumstances. If we consider NFT in the legal and juridical field, it is a special kind of crypto-assets. The regulatory and legal status of such a crypto-asset depends on its characteristics and, therefore, what category it belongs to.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In most countries, there is no regulatory framework for the regulation of crypto assets, and the relevant regulation is carried out only if the characteristics of such an asset are comparable to the specified areas of other financial activities.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As for the issues of the legality of creating screenshots and copying NFTs, it all depends on whether you expect to benefit financially from it. For more information on this topic, visit our blog at this <a href=\"https:\/\/blog.alphaguilty.io\/is-it-illegal-to-screenshot-an-nft\">link<\/a>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Conclusion<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many users and newcomers to <strong>crypto <\/strong>mistakenly underestimate NFT. Claims that the NFT bubble burst much sooner than investors expected can certainly be called groundless.Certainly, the first wave of interest in non-interchangeable tokens has waned, but at the same time, interest in primary and secondary sales of NFT is growing. Everyone can sell their creativity and <strong>NFT marketplaces<\/strong> are interested in making content creators more famous and earning more.<\/p>\n<!-- \/wp:paragraph -->","post_title":"Ultimate NFT Guide | All You Need to Know About NFT","post_excerpt":"What is NFT and why is blockchain technology needed? Non-fungible token examples and how to create your own NFT. How does NFT work and how can you earn from it? 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