Cryptocurrency: All You Need To know
Cryptocurrency is any kind of money that exists digitally or virtually and uses encryption to safeguard transactions. It is also referred to as crypto.
Coins are bought with actual money thereby serving as a means of investment instead of moving around with money or keeping them in banks where charges ruin the actual amount. Coins are bought and stored until their values are appreciated then would eventually be sold at a gain. Although there are instances where the coins depreciate and one is forced to sell at a loss.This is a two-edge of a sword thing.
Cryptocurrencies are also used to buy things, you can use it to pay bills. This holds a very huge advantage because your coins can never be stolen or hacked, It is decentralized, every transaction of the cryptocurrency is being recorded is one ledger with everyone in that network having a copy of it. To hack it, one needs to tamper with every data in that blockchain which is very impossible.
A blockchain is a system of recording information in a way that makes it very difficult to change. It can be seen a very enormous secured ledger.
Another advantage it holds is that transactions have no limits in a day, it charges little or no transaction cost, there are no delays or extra charges in making international transactions. And you don’t have to worry about exchange rates or even interest rates.
The downside is that they are not accepted as a means of payment in most places which is why people choose to trade it.
There are over a thousand types of cryptocurrency. Bitcoin however is the most popular one:
Bitcoin is the first cryptocurrency and the most traded one. It was founded in 2009 by Satoshi Nakamoto.
Litecoin is the most comparable cryptocurrency to bitcoin, however it has advanced more quickly in terms of new developments, such as faster payments and procedures to support more transactions.
Ethereum is the second most traded, it was founded in 2015. It is faster than bitcoin.
How to buy cryptocurrency
1. Do an extensive research on which coin to invest your money in. Don’t just blindly follow the crowd. You can research on CoinGecko.com or CoinMarketCap.com which gives the price and detailed information about a coin.
2. Store your coins in a wallet. This is not just the ordinary type of wallet you know. A crypto wallet is a physical device or online software used to store the private keys to your cryptocurrencies. Some wallet have a specific type of coin they store while others store multiple types of coin. Make sure the wallet you use supports the coin you’re buying.
Once you have your wallet, the next step is to locate your wallet address for receiving payments.
3. Find an exchange that sells the coin you want to buy. Choose an exchange that supports all the coins you want to buy. You can use the above websites to look for a good exchange.
Cryptocurrency is very volatile. As much as you can make money with it, be wise to invest the amount of money you can afford to loose.
You can also read: How To Trade Forex/Synthetic Indices. FOREX: Everything You Need To Know.