Learn cryptocurrency in a good way
Cryptocurrency: Is Bitcoin a good Investment? How does it Work?
Most of us got into crypto currency by hearing a friend of a notorious figure praising its potential. Today, the world and the people itself started to be inquisitive in the matter of noticing, How valuable and helpful Bitcoin and other crypto was.
Probably everyone heard about Bitcoin and crypto currency by now but don't fully understand what is it and still tend to find solution to the tons of questions. So, What's it? Is it safe? Did anyone get rich from bitcoin and How do you invest in it? To help, We'll answer those questions.
We're in generation where technology innovate and technology plays an Important role in society today. Technology has changed and affects the way individuals communicate, think, work, pay for goods and even invest. Companies and consumers are no longer needs to prefer cash anymore and with the use of a smartphone, consumers could pay for items via digital. Today, You can pay anything with the use of new payment system that emerging which is the “ Cryptocurrency “.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency also known as "Digital Money" it is a medium of digital payment system that doesn't rely on banks (Cash) for transactions. It can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transaction. Cryptocurrency is a way of exchange, established and stored electronically in the block chain, using encryption techniques to control the creation of monetary units and to verify the transfer of funds. Bitcoin, Ethereum and Ripple are the Best Example. Instead of using Physical money that is carried everywhere and exchanged in the real world, cryptocurrency will help you to pay using online database that describe specific transactions.
UNDERSTANDING BITCOIN
Bitcoin is a decentralized currency that uses peer-to-peer technology, enabling the network to collectively carry out all duties, such as cryptocurrency exchanges, payment services and authentication.
Through a "mining" mechanism that requires powerful computers to solve complex algorithms and crunch numbers, Bitcoins are manufactured digitally. They are currently generated every 10 minutes at the rate of 25 Bitcoins and will be capped at 21 million, a rate predicted to be reached in 2140. That each Bitcoin is basically a database system which is stored on a smartphone or computer in a 'digital wallet' app. People can send Bitcoins to your digital wallet (or part of one), and you can send Bitcoins to other individual people. In a public list blockchain is a distributed ledger, which single transaction is documented.
TIPS ON HOW TO INVEST IN CRYPTOCURRENCY SAFELY (THE PROBLEM OF TRUST)
Trust is a tough thing. It's hard for us to lend money especially if We don't know if it's legitimate or not. Investments are always risky, but some professional says cryptocurrency is one of the very riskier investment options out there. The world of cryptocurrencies is vast. It does not stop at Bitcoin or Blockchain. You will need to train a minimum and use common sense to hope to grow your investments.
However, digital currencies are also some of the ablaze commodities. If you're planning to invest in cryptocurrencies, these tips can help you to invest safely.
1. BE SURE
Make things sure will help you not to be perplexed especially in the end of the day you wouldn't regret. You need to fully understand why you wanted to invest and understand the risk of investing money. People tend to rush things, They're impulsive to some things. From making hasty decisions to getting into fights, impulsivity can cause harm to yourself and those around you. In addition to undermining relationships and your overall sense of well-being, impulsive behaviors can also lead to financial and legal harm if left unchecked.
2. ONLY INVEST MONEY THAT YOU CAN LOSE
Second tips in investing in cryptocurrency: You need to invest money that you're willing to lose. It must be money you do not need in you daily life. If ever you lose that money, it shouldn't affect your life. Never spend the whole money that you have
3. DO YOUR OWN RESEARCH (DYOR)
Investing in the top 10 crypto-currencies is never a big mistake. Investing in some of these cryptocurrency is also a guarantee of security. Never invest on the advice of people you do not know because even your closest friends can betray you. Have your own research before investing. Nowadays, it's important to be well informed so that you can form your own decision about a cryptocurrency. Do not hesitate to lend your time just to do a Research because it's for your own goods. It is better to miss a good opportunity from time to time than to go headlong into projects that will make you lose money.
4. FIND TRUSTED PEOPLE YOU CAN FOLLOW.
Find people that could help you with your investments. Some of us doesn't want to spend minutes or hours just to analyze a project or just they don't have enough time. Then the other option is to follow a person whom you trusted and had an experienced who can give you advice. However, you should be sharp-eyed and choose people carefully because scammers are everywhere, They're experts in manipulating others and they'll use that as advantage to trick you.
5. SECURE YOUR CRYPTOCURRENCY
You’ve probably already heard about bitcoins stolen by hackers. therefore advisable to be particularly cautious and not to stock its cryptocurrency on exchanges. It will be stored on what is called a wallet for cryptocurrency. Although regrettable, these stories are unfortunately true and have always been at the same level: on the cryptocurrency exchange.
IS BITCOINS BETTER THAN REGULAR CASH?
Bitcoin is digital and decentralized, It's faster, cheaper, more secure and immutable. Cash is controlled by banks while bitcoin has owners. As we already know, Bitcoin can help us do online shopping. It’s like an e-wallet which can be created blockchain technology to store, track and spend digital money. Bitcoin has a global acceptance and is less volatile than cash / local currency. Due to this feature, it becomes easier to conduct transactions across boundaries and online. Bitcoin can be used all over the world without going through a conversion process. It is considered at par with Gold and combines the best of cash and gold while providing an open market and no restrictions imposed by banks or governments. Bitcoin allows exchanging value over the internet without any intermediary and gives its users access to their balance through a password known as a private key. So it’s private, secure and at the same time, open.
Cryptocurrency like bitcoin is Fascinating technical achievement, and still have uncountable significant uncertainties to surpass before they could totally restore current currency systems. As we have tried to show in this article, The Cryptocurrencies are a hot topic in the global financial system. There is great volatility of cryptocurrencies exchange rates. Despite the flaws, bitcoins are still considered tour-de-force in the digital Currency. In this way, it gives the individuals more choices or option to manage their In a potential space for the future world that encompasses both centralized and decentralized models, blockchain technology may be very complementary. The blockchain, like any disruptive technology, is an innovation that initially disrupts and may promote the development of a larger ecosystem over time, which includes both the old way and the recent innovation.