Cryptocurrency: The New Gold Rush
A Beginner’s Guide to Cryptocurrencies
What Is Cryptocurrency?
Digital currency can be for payments or investments. Digital currency means that it is not in the physical form of money you can see or touch. It is in the encoded digital records stored in millions of computers around the world like a chain. Blockchain stores small batches of transactions in blocks and chain them together chronologically. Hence, the term “blockchain” But to put it simply, Cryptocurrency is a type of decentralized distributed ledger.
Decentralization means not controlled by any authority, government, or banks. No single institute can influence crypto price hikes and trends, but the users themselves set the price and trends of cryptocurrency. It is like Fiat money, a government-issued currency unbacked by a commodity like gold, and it can enable you to obtain goods, services, or both.
Why were Cryptocurrency launches, and who launched it first?
The cryptocurrency ware introduced by an independent developer named Satoshi Nakamoto (name used by the presumed pseudonymous person or persons who developed bitcoin) in 2009, and Bitcoin was the first created and launched cryptocurrency. The reason behind this concept was to provide a technique for the users to send and receive transactions within seconds to overcome dependencies. By just picking up the mobile, enter the address, money, and all set to go without the direct intervention of banks and the government.
How many cryptocurrencies are there? What are they worth?
More than 10,000 different cryptocurrencies are trading publicly. The total value of all cryptocurrencies on July 9, 2021, was more than $1.4 trillion, down from the April high of $2.2 trillion, according to CoinMarketCap, a crypto market research website. The total value of all bitcoins, the most popular digital currency, was pegged at about $630 billion, down from the April high of $1.2 trillion.
Bitcoin is the most popular coin in the market for the last few years, but some other coins do have the potential to go big. Some of the largest trading cryptocurrencies by market capitalization are:
Is it a low-risk investment?
The cryptocurrency market is buzzing and complex to understand because the crypto market is too emerging and volatile. Investing in crypto assets is risky but also potentially profitable. People are investing due to the ROI (Return On Investment) over traditional investments like Gold, Stock, or Real-estate. A considerable long-term investment if you want to acquire and unveil the demand for digital currency. According to a survey about market fluctuations caused by COVID-19, the people’s view of bitcoins revealed that 47% of people trust bitcoin over big banks, 29% points over the past three years. Conduct your research before investing in crypto, as once you lost it, it is not coming back.
Things to consider before investing:
Cryptocurrency not entirely safe and is vulnerable to being hacked can be used in criminal activities. Storing cryptocurrency is more difficult as compared to retain bonds and stocks. Unexpected changes in the market can lead to sharp and sudden moves in price, and energy consumption in mining also makes it a threat.
Crypto is a volatile market, and a lot of internal and external factors can impact its value, so never invest more than you can afford to lose. Various crypto signal platforms, private Discord servers, Telegram chats, and WhatsApp groups are available that provide a signal for crypto market ups and downs, but it is always good to conduct your own research.
There are some instances someone can get a return up to 100x return if some invest in a new coin having potential but a lot of investors lose huge amount of money as well if the money is invested to failed coins. Withdraw your initial investment as soon you start investing in a coin because not every coin will be a winner.
Never invest without research in a coin just because of hype or marketing tactics to lure you in. A lot of coin projects use paid PR, influencers endorsements to pump the coin. Cryptocurrencies are held in digital wallets and can only be accessed using private keys, and you have to secure your keys. If you lost it, there is no way you are getting your money back.
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