what are they, how to invest and which ones are on the rise?

What are cryptocurrencies

What are cryptocurrencies

Photo: Shutterstock / Finance and Entrepreneurship

A lot is heard about cryptocurrencies, the financial assets that came to transform the investment universe. However, for many Brazilians the subject is still surrounded by doubts: what are these cryptocurrencies? Are bitcoin and cryptocurrency the same thing? How do I invest in this type of asset?

To answer all these questions we spoke with Rodrigo Soeiro, who is an expert on the subject, CEO and founder of Monnos. Check out the interview in ping pong format below:

What are cryptocurrencies?

“Cryptocurrencies are assets with financial value obtained from the supply and demand in the cryptoeconomy. Superficially it can be compared with the real and the dollar, but completely digital, virtual and borderless, they are decentralized currencies.

Currently, cryptocurrencies are already used in the daily lives of people around the world, including Brazil, to shop and pay bills, as is done with any other currency.

There are credit/debit cards that allow payment in cryptocurrencies, such as the Monnos Card.”

Are cryptocurrencies and bitcoin the same thing?

“Bitcoin is one of the more than 10,000 cryptocurrencies that exist in the world. It is the most famous and relevant for having been a pioneer and carrying a proposal for decentralization, allied to a non-inflationary technical model that gives it a clear status of ‘value reserve’ for medium- and long-term investments. Since its creation in mid-2008 until today, bitcoin has gone from zero to US$44,000.

Today, many people invest in Bitcoin. That is, they buy Bitcoin and in the future sell it for a higher price than what they paid for.

It is worth noting that cryptocurrencies, in addition to being used as coins to make payments and purchases, also have a value in their own right – as does gold.”

What are the hottest cryptocurrencies at the moment?

“Bitcoin is the leader among cryptocurrencies, but it’s not where you get the highest returns in the short term. It all depends on your investment strategy, but the currencies that are up in a context of robust projects are:

– Cardano, which appreciated 600% only in the first months of 2021;

– Ethereum, which is the second most relevant after Bitcoin;

– And we have Polkadot, which has been growing with impressive speed.”

How can a person invest in cryptocurrency?

“To invest, you need to open an account on an exchange, which are virtual currency brokers.

Many Brazilians are getting interested and making their first investments in cryptocurrencies this year. Just to give you an idea, around 38.5% of Brazilians who today have cryptocurrencies through Monnos had never invested before.

Among investors from outside Brazil, the vast majority (96.3%) had already invested in cryptocurrencies before.”

Ranking of the 10 most promising cryptocurrencies to invest

Position / Cryptocurrency

1 – Bitcoin (BTC)

2 – Ethereum (ETH)

3 – Polkadot (DOT)

4 – Cardano (ADA)

5 – Binance Coin (BNB)

6 – Uniswap (UNI)

7 – PancakeSwap (CAKE)

8 – Theta (THETA)

9 – Avalanche (AVAX)

10 – Compound (COMP)