Cryptocurrency It allows you to buy goods and services or make a profit. It explains in detail what cryptocurrencies are, how to buy them and how to protect yourself.
Like any other currency, cryptocurrencies can be used to purchase goods and services. However, unlike other currencies, they are cryptocurrencies that are encrypted as cryptocurrencies and use encryption technology to protect secure online transactions.
Even if it is possible to buy things with cryptocurrency, most of the interest in these unregulated currencies is trading for profit and sometimes speculators raise the price.
Here are 7 things about cryptocurrencies to be aware of in this article:
1.What is a cryptocurrency?
2. How many cryptocurrencies are there? How much is it worth?
3.Why cryptocurrency to be popular?
4. Cryptocurrency, Is it a good investment?
5. How to buy cryptocurrency?
6. Cryptocurrency Is it legal?
7. How to protect yourself?
1. What is a cryptocurrency?
Cryptocurrency It is a payment method that can be used to exchange goods and services online. Many companies have issued their own currency, (often called tokens) that can be traded specifically for the goods or services they provide. Think of it as arcade chips or game chips. To access a product or service, you need to convert the correct currency into a digital currency.
Cryptocurrency Applies to a technology known as blockchain. Blockchain is a decentralized technology that is scattered in many computers and manages and records transactions. One of the charms of this technology is security.
2. How many Cryptocurrencies are there? How much is it worth?
According to data from a reputable market research website, more than 6,700 cryptocurrencies were found to be traded publicly. Cryptocurrencies continues to expand and raise funds through traditional coin products or ICOs, according to few datas, as of September 2, 2020, the total value of all cryptocurrencies exceeded US $ 370 billion, while the combined value of all Bitcoin, the resulting digital currency. The most popular is estimated at $ 210 billion.
Top ten cryptocurrencies by market capitalization
3. Why cryptocurrency is be popular?
Cryptocurrency Gaining followers for a variety of reasons Here are some of the most popular.
Proponents of cryptocurrencies like Bitcoin see it as the currency of the future and are ready to buy it before it becomes more valuable.
Some followers like that cryptocurrencies prevent central banks from managing their money supply, because these banks will depreciate their money over time.
Other sponsors such as technology in cryptocurrency, decentralized and more secure processing and add recording system than traditional payment systems.
Some speculators like cryptocurrencies because it adds value and doesn't care to use a long-term currency as a transfer method.
4. Cryptocurrency: Is it a good investment?
The price of cryptocurrency may go up. But many investors view it as speculation rather than real investment. The reason? Like real money, cryptocurrencies do not generate cash flow, so someone has to pay more to generate income.
This is what we call investment theory. In contrast to a well-run company, the latter can increase operating profit margins and cash flow, thereby adding value.
"It is important to note that for those who considered cryptocurrencies such as Bitcoin as a future currency need currency stability."
While the creator NerdWallet discovered cryptocurrencies like Bitcoin can be unsafe and some major voices in the investment community are suggesting potential investors to avoid. It's worth noting that legendary investor Warren Buffett compared Bitcoin with paper checks: “This is a very efficient money transfer method. You can do anything anonymously. The check is a remittance. One way, is the check worth a lot?
For those who consider Cryptocurrencies like Bitcoin are the currency of the future. It is important to note that the currency must be stable so that traders and consumers can determine the fair price of the commodity. Bitcoin and other cryptocurrencies are stable in most of the history. For example, Bitcoin was traded at around $ 20,000 in December 2017, but dropped to around $ 3200 a year later. As of September 2020, over $ 11,000 was traded.
Price volatility has created a frustration. If Bitcoin is more valuable in the future, people today are less likely to consume and distribute Bitcoin, making it less useful than the currency. If next year the market value is 3 times, why use Bitcoin?
5. How to buy cryptocurrency?
Some cryptocurrencies (including Bitcoin) can be purchased in US dollars, while others require payment in Bitcoin or other cryptocurrencies.
To buy cryptocurrency, you need an online application, "Wallet" to use your currency, usually you can buy cryptocurrencies such as Bitcoin or Ethereum. This wallet can be created by creating an account on the stock exchange for transferring real money.
Coinbase is one of the popular cryptocurrency exchanges where you can build a wallet and buy and sell Bitcoin and other cryptocurrencies. More online brokers offer cryptocurrencies such as eToro, Tradestation, and Sofi Active. Robinhood offer free cryptocurrency transactions (Robinhood Crypto is available in most states in the United States, but not all).
6. Cryptocurrency Is it legal?
Although basically China prohibits use But the final legality depends on the country. But there is no doubt that it is legal in the United States. Also, check out how to protect yourself from scammers who view cryptocurrencies as an opportunity to invest in your account. As always, customers are still cautious.
7. How do you protect yourself?
To buy crypto on ICOs, read the details of the company manual for the following information:
Who is the business owner? Famous and famous owners are a positive sign.
Are there other big investors investing here? A good sign is that other reputable investors want the currency.
Do you want to own shares in a company or just a currency or a token? This difference is important. Ownership means that you can contribute to the proceeds. (You own it) While buying a chip means you are only entitled to use it like casino chips.
Has the currency been developed? Or do you want the company to raise development funds? The longer the product is, the lower the risk.
"If you want to buy crypto in ICO, please read the company manual for details."
Cleaning up business requirements requires a lot of work. The more detailed information you have, the more legitimate it will be. However, even the legitimacy does not mean the currency will succeed. This is a completely free issue and requires a lot of marketing knowledge.
However, in addition to these concerns, as hackers attempt to break into a network of computers that own their assets, cryptocurrencies are also at risk of theft. In 2014, a prominent stock exchange declared bankruptcy after hackers stole Bitcoin, Hundreds of millions of dollars. This is not a common risk investing in stocks and funds in all major US stock markets.
