Crypto, or cryptocurrency, is a type of digital currency created to promote financial freedom, transparency, and inclusivity. Unlike traditional money issued and regulated by central authorities like governments or banks, cryptocurrencies are decentralized, borderless and stateless, meaning they are not controlled by any single institution, person, or entity.

Cryptocurrencies combine advanced concepts from cryptography, mathematics, and computer science to create a global, secure, peer-to-peer financial system. This system operates based on transparent, pre-defined rules rather than relying on centralized authorities or intermediaries.

While some critics label cryptocurrency as a fleeting trend, many others see it as the dawn of a financial revolution.

The rapid adoption and increased interest from governments, businesses, investors and users alike points to crypto becoming more mainstream. We are seeing all the ways cryptocurrency has the potential to transform how we connect, transact, and think about money. As transformative as it can be, its novel nature and unique model mean there is a learning curve and anyone who wants to be involved in the crypto market needs to do some research before diving in.

1. What is Cryptocurrency?

Cryptocurrencies are digital currencies powered by a combination of cryptography, computer science, and economics to form a borderless, decentralized payment system. Together, these fields ensure the system’s integrity and efficiency.

• Cryptographic techniques secure transaction data.
• Computer science maintains consistent data across all participants.
• Economic incentives encourage participants to act honestly, ensuring the system’s stability.
  
  At Freedx, we make crypto simple, so it's accessible, secure and convenient for everyone. Our platform empowers new and advanced users to participate in the future of finance.

2. How Does Cryptocurrency Work?

At the heart of cryptocurrency is decentralization. Without a central authority, how can such a system function securely?

The answer lies in two foundational elements: blockchain technology and distributed networks of computers.

Blockchain technology

A blockchain is a public ledger that records transaction data securely and transparently. Each network participant (called a node) maintains their own copy of the blockchain, and all nodes must agree on new transactions before they’re added to the ledger.

By linking blocks of data in chronological order, blockchain technology creates an unbreakable chain that ensures transaction records are immutable and self-verifiable.

This process ensures the system operates fairly and tamper-proof, without needing central authority.

Consensus mechanisms

Instead of relying on a single decision-maker, blockchain networks use consensus mechanisms like proof-of-work (PoW), proof-of-stake (PoS), Delegated Proof of Stake (DPoS), Proof of Burn (PoB) and others. These mechanisms encourage honest participation and penalize malicious behavior, maintaining the network’s integrity.

Since blockchains became popular, crypto projects have started implementing new consensus mechanisms like Proof of Activity, Proof of Weight, Proof of Importance, Leased Proof of Stake, etc to find ways to grow the network securely while keeping decentralization. The challenge of solving what experts call” The Blockchain Trilemma” remains with most consensus algorithms solving one of the three main components of blockchain networks - security, scalability or decentralization. Solving all three has so far proven near impossible with different blockchains emphasizing one or two of the three at the expense of the others.

3. Why Use Cryptocurrency?

Cryptocurrencies are gaining popularity for several reasons. You can use them to:

• Send money across borders quickly and affordably.
• Obtain exposure to digital assets such as Bitcoin, which some market participants see as a potential store of value
• Buy goods and services directly from vendors.
• Support charitable causes or fundraisers without censorship.
• Participate in decentralized apps (DApps).
• Vote on governance proposals within crypto ecosystems.
• Earn staking rewards by helping secure blockchain networks.
• Prove ownership of digital assets, such as NFTs.
• Cryptocurrencies are versatile, and their applications are constantly expanding.

4. What cryptocurrencies are not

Despite its growing adoption, cryptocurrency remains widely misunderstood. Let’s debunk a few common misconceptions:

Myth: Cryptocurrency is only for illegal activities.
Truth: Less than 0.5% of crypto transactions are tied to illicit activity, according to Chainalysis. The vast majority of use cases are legitimate.

Myth: Cryptocurrency is completely anonymous.

Truth: Crypto is pseudonymous, not anonymous. Blockchain transactions are publicly visible, but linking them to specific people is challenging.

Myth: Cryptocurrency is bad for the environment.

Truth: Some cryptocurrencies, like Bitcoin, are energy-intensive, but many newer coins use eco-friendly models like proof-of-stake to minimize their impact.

Myth: Cryptocurrencies are not backed by anything.

Truth: While some cryptocurrencies are not backed by governments or real-world assets, their value comes from limited supply, practical use cases, and the robustness of their technology. Others, like stablecoins like USDC and USDT maintain reserves in cash and other assets and are therefore “backed” by these assets. Investors should carefully read issuer documentation, including reserve attestations and regulatory disclosures where available, as reserve composition and value may change over time.

Myth: All cryptocurrencies are like Bitcoin.

Truth: Thousands of altcoins exist, each with unique purposes, features, and innovations.
There are many debates online between regulatory bodies, institutions, users and investors on the nature, applications, benefits and drawbacks of crypto. At Freedx, we strive to emphasize the need for research and education before entering the dynamic crypto market and we encourage everyone to DYOR (do your own research) before making any investment.

5. How to buy cryptocurrency

Getting started with cryptocurrency doesn’t require technical expertise or prior experience—just an internet connection and a device.

1. Sign Up & Verify Your Account: Start by creating an account on Freedx and completing our simple KYC process.
2. Fund Your Wallet: Deposit funds into your Freedx wallet using your preferred payment method.
3. Start Trading: Buy, sell, or hold cryptocurrencies with our easy-to-use platform. Our trading tools and charts help you make informed decisions.

4. After your purchase, remember to store your crypto securely.

6. How to secure cryptocurrency

While blockchain technology is inherently secure, how you store and handle your crypto is of paramount importance. Understanding the difference between the available types of wallets is the first step to knowing how to safeguard your assets.

Hosted vs. Self-Hosted Wallets

Hosted Wallets – These wallets are managed by a centralized exchange or service (like Freedx). The exchange holds your private keys, providing convenience but relying on their security measures.


Self-Hosted Wallets – Here, you control the private keys, which can be stored online (hot wallets like MetaMask) or offline (hardware wallets like Ledger). While this offers greater control and security, the responsibility for safeguarding keys lies entirely with you.

Essential Security Tips

The crypto market attracts many bad actors who target users and attempt to exploit the platforms, technology and wallets people rely on to transact with cryptocurrencies. Understanding the risks and learning how to stay safe is essential for anyone who wants to be a part of this fast-paced industry.

1 . Choose the Right Wallet Type

• For Convenience: Hosted wallets allow quick access and easy management but depend on third-party security.
• For Maximum Security: Self-hosted hardware wallets store keys offline, making them less vulnerable to hacks.

2 . Enable Two-Factor Authentication (2FA)
Whether using a hosted or self-hosted wallet, always add an extra layer of protection to your accounts.

3 . Be Wary of Phishing Scams
Avoid clicking on suspicious links or responding to emails requesting sensitive information. Never share your private keys.

4 . Backup Your Wallet
For self-hosted wallets, securely store recovery phrases offline. These backups will help you regain access if your wallet is lost or damaged.

7. The Freedx Advantage

Why should you trust Freedx for your crypto trading and transactions? As a new player on the centralized exchange scene, there are several things that set us apart:

• Seamless Experience: From our intuitive user interface to our fast transaction speeds, we prioritize a hassle-free experience for all users.
• Security First: Your safety is our priority. We employ top-tier encryption, two-factor authentication, and cold storage for digital assets to safeguard your funds.
• Support & Education: We provide comprehensive resources and 24/7 customer support to ensure you have everything you need to succeed in the crypto world.
• Transparent Fees: Enjoy competitive and transparent fee structures with no hidden charges.
• Industry-leading Expertise: Freedx is the product of a team with decades-long experience in the crypto and blockchain space and a successful track record in fintech, banking and investment.
  
  We take a human-centric approach that puts the user in the center of everything we do and design at Freedx. All services, features, experiences and campaigns are designed to empower our users and help them move forward in their crypto journey.

8. Most Well-known Cryptocurrencies

There are thousands of cryptocurrencies, but here are some of the most well-known:

• Bitcoin (BTC): The first and most well-known cryptocurrency, often referred to as digital gold. It’s primarily used as a store of value and for peer-to-peer transactions.
• Ethereum (ETH): Known for its smart contract functionality, Ethereum is a platform for building decentralized applications (DApps) and hosting various tokens.
• Stablecoins: These are cryptocurrencies like USDT and USDC, which are pegged to stable assets like the US dollar. They are used to avoid market volatility.
• Altcoins: Many alternative cryptocurrencies (altcoins) serve different purposes, from privacy-focused transactions to supply chain management.
  Freedx supports trading in top cryptocurrencies, giving you the flexibility to diversify your investments.

9. Frequently Asked Questions

Q: Are cryptocurrencies taxed in my country?

A: In general, cryptocurrencies are subject to Capital Gains Tax or Income Tax - but this depends on the country where you reside and the transactions you've made.

Q: How do I invest in crypto?

A: To buy, sell or trade cryptocurrencies, you can make a purchase through Freedx exchange or a dex platform. Some applications also support the sale and purchase of cryptocurrencies.


Q: Is cryptocurrency legal in my country?

A: Cryptocurrency regulations vary by country. We advise checking your local laws before trading.

Find more answers in our comprehensive FAQ section or reach out to our support team.

10. Next Steps on Your Crypto Journey

Freedx is a newly established cryptocurrency exchange dedicated to providing a seamless, secure, and innovative trading experience. Our team comprises experienced professionals from the crypto, finance, and technology sectors, all passionate about driving the future of digital finance.

Visit our blog for more information on crypto and blockchain to navigate the sector with confidence. Don’t forget to join Freedx via email and TG to be part of the beta and earn exclusive rewards.