THE ONLY
DECENTRALIZED AUTONOMOUS RESOURCE TOKEN

Cryptoassets or cryptocurrencies are “cryptographically secured digital representations of value or contractual rights that can be transferred, stored and traded electronically”, according to HMRC’s definition.

Depending on whether you include failed ones or not, there are around 5,000 to 7,000 cryptocurrencies in existence. Bitcoin is the largest cryptocurrency, with a market cap of around $600bn, followed by Ethereum. Other popular cryptocurrencies include XRP, Tether, and Litecoin. The top five cryptocurrencies currently account for more than 80% of the market.

There are lots, since the whole sector is kind of like the Wild West. Scams are rife, and the currencies themselves are volatile, but that doesn’t seem to be putting off consumers, and cryptoassets are gaining mainstream acceptance. Back in October, a decision by PayPal to allow its US customers to buy, sell and hold cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash and Litecoin from 2021 signalled that the use of digital currencies is becoming much more commonplace. However, not everyone is on board with the mainstreaming of crypto money.

There are lots of startups offering ways to trade cryptocurrency, but you might be sceptical about trusting your money to a brand new name. More established platform Revolut, which was set up in 2015, now allows users to invest in currencies like Bitcoin, Ethereum and Stellar.