Cryptocurrency are digital currencies whose security is based on cryptography. Unlike the so-called "fiat" currencies issued by central banks, cryptocurrencies do not have a centralized issuer. Instead, their issuance is based on transparent rules, which are programmed into the cryptocurrency protocol. Cryptocurrencies enable payments between two parties, with no need for banks or other payment intermediaries. All transactions made with cryptocurrencies are recorded in a public blockchain, in which their validity can be checked by anyone.

Bitcoin is the world's first and largest cryptocurrency by market value.Bitcoin enables payments between parties unknown to each other, allowing both parties to trust and verify that the payment transaction has been completed correctly, without banks or other intermediaries. Bitcoin's issuance is programmatically predetermined and halves every four years. There are approximately 19.5 million Bitcoins in existence at the time of writing, and its issuance is hard capped at approximately 21 million. Bitcoin was launched in 2009 and its total market value at the time of writing (March 2024) is around 1,2 trillion euros.

The easiest and safest way to invest in crypto assets is by using a trusted and transparent crypto asset broker who operates under the regulation of the Financial Supervisory Authority. Before investing in crypto assets, as in any other investment, it is important to familiarize oneself with the asset in question, so that one understands the risks associated with it and is able to allocate in accord with one's investment goals and risk tolerance.

The tax practices of crypto assets have become more established in recent years due to the industry's high growth. However, tax practices can vary significantly between jurisdictions and you should always consult a tax professional on your taxation matters especially in the case of selling, trading, spending or earning crypto assets or mining crypto assets. Note: Kvarn doesn't provide tax advice. None of this should be considered as advice or an individualized recommendation. Please consult a tax professional regarding your own tax circumstances.

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Blockchain is a way of organizing information. Entries to the blockchain are bundled up into 'blocks', and the blocks in turn are arranged sequentially into a 'chain'. Correctness of the blockchain is ensured cryptographically, which makes sure that it is not possible to change either the content or the order of the blocks or after they have been added to the blockchain. Blockchain technology enables decentralized ledger, in which anyone can monitor and check the correctness of the entries made. Decentralized ledger, on the other hand, enables trust between parties who do not know each other, without using any trusted intermediaries. Cryptocurrencies are based on this distributed ledger and the trust it provides.

Ethereum, which was launched in 2015, is, along with Bitcoin, the most significant blockchain in the world. Unlike Bitcoin, whose purpose is to enable peer-to-peer payments, Ethereum aims to offer significantly more use cases by enabling the so-called smart contracts. Smart contracts are small computer programs programmed into the blockchain that operate independently according to predefined rules, and whose content can be verified by anyone. Besides just payments, smart contracts enable more complex transactions between unknown parties, without trusted intermediaries. The native token of the Ethereum blockchain is Ether (ETH), whose market value is the second largest in the world (after Bitcoin), at the time of writing (March 2024) around 400 billion euros.

Market order A market order is a command to buy or sell an asset at the price currently available on the market, and is the most basic type of trading order, but in some cases also the most risky type of order. Market orders are designed to be executed immediately, but they do not guarantee a price. A market buy order will execute at the nearest ask price (what someone is willing to sell for) and a market sell order will execute at the nearest bid price (what someone is willing to buy for). Limit order A limit order is a command to buy or sell an asset at a specific price — or better if possible. A limit buy order is executed at the limit price (maximum price) or lower, while a limit sell order is executed at the limit price (minimum price) or higher. However, limit orders are not guaranteed to execute. A limit order will only be filled if the market price of the asset reaches the limit price. Although limit orders don't guarantee that your order will be fulfilled, they are useful because they can ensure that you do not pay more (buy) or receive less (sell) than a specific set price. Note: When placing limit buy orders the limit price must be below the current market price and in limit sell orders the limit price must be above the current market price. If the limit price you submit is not consistent with these conventions, the order will be executed immediately as a market order.

The history of digital assets is shorter than that of many other industries. The blockchain industry's technological solutions are still in their infancy, so investing involves industry risks specific to developing technologies. These include technological risk and risks related to usability and adoption. The industry's rapid development has also created challenges for comprehensive regulation and its effective supervision. In addition, the scarcity of professional service providers has exposed investors to increased operational risks. The digital assets market is a high-risk investment, characterized by high volatility. However, with a professionally prepared strategy and taking the investment horizon into account, the industry offers an attractive long-term risk-return ratio. Given its risk, the sector's allocation is typically moderate – for example, 1–5% of the entire investment portfolio – and should be defined on a case-by-case basis according to the risk profile and investment horizon.

Kvarn X offers a wide selection of cryptocurrencies for buying and selling, secure custody, real-time market data, advanced trading tools, and reporting services for taxation. We aim to make crypto investing easy and secure.