Page 6 - Crypto Beginners Guide

Now, the Basics To better understand the potential of cryptocurrencies one must compare
them to incumbent currencies, called fiat currencies – like dollars, euros or pounds
sterling. Let’s start with the similarities. They are mediums of exchange that can be
used to store and transfer value, as well as to purchase goods and services.

Both are legal. They can be used for trading and/or investing. Both rely on
widespread consumer trust to function as means of exchange. Both have their value
governed by economic factors such as supply, demand, work, scarcity…
However, there are 5 major critical differences. And this is where the revolutionary
power of crypto lies in.

By cutting out middlemen and disrupting traditional financial systems and banks,
crypto advocates decentralization and individual empowerment.
Crypto is the fuel for an entire new system in which you, as a free individual, have
more power. In which you can “be your own bank”. Resulting in more freedom,
independence, transparency and privacy regarding all your actions. This is what
crypto is about: putting people back at the center and giving them control over
their lives.

Ledger Crypto Beginner’s Guide 06