When we talk about crypto, the discussion automatically moves toward Bitcoin (BTC) and Ethereum (ETH), which are the top two cryptocurrencies. But the truth is that the crypto market is a lot more than these cryptocurrencies.
The crypto sector is attracting investors of all sorts due to the functionality and opportunities offered by the blockchain technology which powers cryptocurrencies. One particular area is decentralized finance which is attracting a lot of investments.
If we look at how Bitcoin first started in 2009, the technology has come a long way since, and today we have a lot of different coins and technologies powered by blockchain.
But let's not forget that the crypto industry is still in the early stages, and any type of investment should be done only after careful research.
Bitcoin, Cardano, and Ethereum are built on their own version of the blockchain. One particular type of crypto technology is called DeFi or decentralized finance which allows users to exchange, use, and transfer funds without any middle man.
One of the major benefits of DeFi is that it totally removes the need for any bank, clearing house, or even insurance company. This removal of the middle man saves money, time, and gives more power to the users.
Now let's discuss whether it is a good idea to add crypto to the portfolio or not... When we talk about crypto, there are a few things that everyone agrees upon: This is a new market and carries a lot more volatility and risk than other financial markets.
That's why a lot of regulatory authorities and even experts recommend only investing that money in crypto, which you can afford to lose. Because if you look at the everyday movement of any cryptocurrency, it is normal to witness moves of 10%, 20%, or even higher on a single trading day!