Crypto Basics You Should Know - Part 1

We'd like to introduce the features of the cryptocurrencies you can trade in mock investing here at maruLab.

Bitcoin (BTC)
The first cryptocurrency, called digital gold, and mainly used as a store of value.
Its supply is capped at 21 million coins, giving it significant scarcity value.
Key information investors should know:
Market dominance: Bitcoin is the best-known cryptocurrency and has strong dominance in the market.
Volatility: Its price is highly volatile, so short-term investment carries risk.
Institutional investment: Large companies are adopting Bitcoin as an asset, and interest from institutional investors is high.
Risk factors: Issues such as scalability and transaction speed remain ongoing challenges.
Reasons to invest: It can be expected to rise in value over the long term as a digital asset, and it is also used as a hedge against inflation.
Ethereum (ETH)
A blockchain platform that supports smart contracts and decentralized applications (dApps).
Various innovative services, such as decentralized finance (DeFi) and non-fungible tokens (NFTs), are being developed on Ethereum.
Key information investors should know:
Smart contracts: Ethereum is not just a cryptocurrency but a platform on which various dApps can be built.
Upgrade: With the "Ethereum Merge" in 2022, it switched from proof of work (PoW) to proof of stake (PoS), improving energy efficiency.
Risk factors: High gas fees (transaction fees) and network congestion are cited as drawbacks.
Reasons to invest: It plays an important role in smart contracts, NFTs, and DeFi, and has strong potential to grow along with the development of blockchain technology.
Ripple (XRP)
Mainly used to efficiently process international remittances and settlements between financial institutions.
It boasts fast transactions and low fees.
Key information investors should know:
Major partners: It works with a number of global banks and is being actively adopted in the financial industry.
Legal issues: A legal dispute with the US Securities and Exchange Commission (SEC) is ongoing, which may affect price volatility.
Risk factors: Its centralized nature may be a drawback for investors who value decentralization.
Reasons to invest: Considering its potential in the international remittance market, it has strong long-term growth potential.
Dogecoin (DOGE)
A cryptocurrency that started from an internet meme in 2013, mainly used for small transactions and tipping.
There is no limit on its supply, and transaction speeds are fast.
Key information investors should know:
Community-driven: Dogecoin gained attention thanks to its active community and support from celebrities (e.g., Elon Musk).
Volatility: Its value can fluctuate significantly depending on social trends or remarks by public figures.
Risk factors: The project lacks fundamental technological innovation, and because its supply is unlimited, it may be vulnerable to inflation in the long run.
Reasons to invest: It is highly speculative in the short term, and price increases can be expected due to community influence.
Cardano (ADA)
A research-driven blockchain platform that focuses on security and sustainability.
It uses a proof-of-stake (PoS) algorithm to improve energy efficiency.
Key information investors should know:
Long-term growth potential: A blockchain that emphasizes scalability and sustainability, supporting smart contracts and decentralized apps.
Technical differentiation: Cardano is developed on the basis of scientific research and verification, giving it high technical reliability.
Risk factors: Cardano has many technologies still in development, so it may take time to build a complete ecosystem.
Reasons to invest: Thanks to its research-based approach and scalability, it shows a positive long-term outlook.
Bitcoin Cash (BCH)
A cryptocurrency created by a hard fork of Bitcoin in 2017.
It focused on improving transaction speed and lowering fees through a larger block size.
Key information investors should know:
Differences from Bitcoin: Bitcoin Cash attempted to solve the scalability problem through a larger block size.
Purpose of use: It is used as a faster and cheaper means of payment than Bitcoin.
Risk factors: It may find it difficult to gain an edge in competition with Bitcoin, and its adoption in the market may be limited.
Reasons to invest: It has the advantages of low and fast transaction fees, but it will be difficult to surpass Bitcoin's leading position.
StormX (STMX)
A platform that offers cryptocurrency rewards for shopping and completing tasks.
It is based on the Ethereum network and pays users cryptocurrency as rewards.
Key information investors should know:
Real-life use: Its system of rewarding shopping and tasks makes it easy to experience cryptocurrency in everyday life.
Risk factors: It can grow into a sustainable model only with strong marketing and broad user participation.
Reasons to invest: If its real-world use cases increase, it has the potential to promote cryptocurrency adoption.
Chainlink (LINK)
A decentralized oracle network that allows smart contracts to use real-world data.
It connects smart contracts with external data, increasing the usefulness of blockchain apps.
Key information investors should know:
Growing demand: As the need for oracle networks grows in areas such as DeFi, demand for Chainlink is increasing.
Risk factors: There may be concerns about whether Chainlink can maintain its dominant position in a highly competitive market.
Reasons to invest: Chainlink plays an important role in connecting blockchains with external data, so it has strong growth potential along with the development of smart contracts.