2019 has kicked off and if you still don’t know about cryptocurrency then you’re at a loss. It’s time you learn about it now!
The word cryptocurrency has been tossing around the internet for quite some time now. This geeky ordeal has become a global phenomenon and is not understood by many. So here we are bringing you the ultimate guide to cryptocurrency.
Crypto started in 2008, they were created over an ICO or Initial Coin Offering. Their working is a lot similar to stocks and works on the supply-demand chain. However, this ‘internet nerd money’ isn’t regulated by the government.
So, they are digital money that is designed to work as a medium of exchange, without the taxes. These are controlled by the locals and no one person can have a monopoly over them, thanks to blockchains.
Pretty sure y’all must be staring at your screens like this. So, let me break it down for you.
In simpler terms, blockchain is a system which records every transaction and stores it onto a computer. It prevents anyone from making changes into the record because everyone using the system is watching. It stores information across a network of computers making them personal and decentralized. This allows it to be secure and anonymous. Amazing, right?!
Cryptocurrency is pretty much a demand game, which means it is directly affected by the amount of demand. If a group of people was to buy at the same time then the price would go up very quickly. Then they would ‘dump’ it when they feel they have earned enough. This process can last for 10-30 seconds, which shows how fluctuating the whole market is. Which can be very frustrating so… don’t tell us we didn’t warn you.
Cryptocurrency can be used for two purposes; speculating and investing. If you’re speculating when you’re aiming for short-term earning, very much similar to your current bank account. In which you would normally buy and sell in a comparatively quick manner. For this,https://media.giphy.com/media/DFMTVb0POmXHq/giphy.gif you need to keep an eye on the market so you don’t buy high and sell low.
Not like literally though…
The other purpose is an investment, this is a long-term earning, much like any other asset you own. For this, you need to look at the long-term prospects of the currency and not be bothered by short-term fluctuations in the market.
There are more than one cryptocurrency markets, the most popular one being Bitcoin. But others like Ethereum and Litecoin are catching up fast. However, Bitcoin is the most common currency in the market and offers good value. If you’re new and want to test the waters then Bitcoin is surely the safest option.
Although, you need to take precautionary measures before you enter this virtual economic ecosystem. Scammers are everywhere and you need to research on which site to use. You go on Reddit or Bitcoin forum and ask. Stray away from sites that use these phrases ‘FREE’, ‘double your earnings’ and ‘no strings attached’. You also need to be aware of hackers so make sure you use strong, abstract passwords and make sure you write them down on a notebook – time to go old school – because storing them on devices with internet can make them susceptible to hackers.