Everyone has heard how Bitcoin and other cryptocurrencies have recently become billionaires as they bought a year ago. Not only is it possible to earn 1,000% or more, these have become commonplace with many cryptocurrencies. Anyone who buys Bitcoin for less than ৫ 500 in May 201, gets a 1,400% profit in about 1 month. Then over the last few days, we’ve seen Bitcoin lose about ড 1,000, so to say these cryptocurrencies are volatile would be without a huge amount.
Since the introduction of Bitcoin in 2006, we at Trend News have been skeptical of the survival of cryptocurrencies, because there is a clear threat to governments that they want to see all transactions and pay taxes. However, while we may still be wary of true cryptocurrencies, we are very much aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will significantly affect every sector of the global economy, such as how data is handled and how it affects the Internet media.
Here are some questions and answers to get us started …
Q: What is a cryptocurrency?
The most well-known cryptocurrency (CC) is Bitcoin CO. It was first CC, launched in 2006. Today there are more than 600 CCs including Ethereum, Litcoin, Dash, Jacash, Ripple, Moniro and they are all “virtual”. There are no “physical” coins or coins.
Q: How does CC work?
CCs are virtual currencies that exist in very large distributed databases. These databases use blockchain technology. Since each blockchain database is widely distributed, it is considered resistant to hacking, as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often known as “miners”, who legitimize the transaction. A CC called Etherium uses “smart contracts” to validate transactions. Crypto Trends will provide more details in the next news release
Q: What is a blockchain?
Blockchain is a technology that underpins all CCs. CC is inserted into a block attached to each transaction chain for purchase, sale, or exchange. This technology is complex and will not be explained here, but it is likely to revolutionize the financial services industry, as transactions can be executed quickly and easily, reducing or eliminating fees. The technology is also being tested for applications in many other industries.
Q: Are CC exchanges regulated by the government?
For the most part the answer is no, which is a big attraction of this market to some users. It is now the “Wild West”, but governments in most developed countries are examining this market to decide what controls may be needed. Canada and the United States have so far declared that CC is legal, but the situation remains fluid in terms of reporting and taxation. Crypto TREND will follow and report on these developments.
Q: How do I invest in this market?
You can buy, sell and exchange CC using the services of specialized “exchanges” that act as brokerages. You start by selecting an exchange, setting up an account, and transferring Fiat currency to your account. You can then buy and sell your CC order. There are many exchanges around the world. Account opening is fairly easy and these exchanges have their own rules about initial funding and withdrawals.
Crypto Trade CC will recommend the exchange in the future.
Q: Where do I put my CC?
You need to have a digital wallet to have the freedom to move your crypto currencies around and pay bills. These wallets come in multiple formats such as desktop, cloud based, hardware (USB), mobile phone and paper. Many of them are free, however, security is a big factor because no one ever wants to lose or steal their wallet. Crypto TREND will recommend digital wallets in the future.
Q: What can I do with my CC?
In addition to investing in CC products, you can also use cryptocurrencies for some financial transactions, such as money transfers and bill payments. The list of cryptocurrency companies is growing rapidly and includes big hitters such as Microsoft, GAP, Jesse Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zenga, Subway and WordPress.
Q: What’s next?
To begin with, we will keep each article of the crypto trend short and keep the scope of each one as narrow as possible. As we mentioned earlier, we believe that cryptocurrency technology will be a game changer and potential investment opportunities like this come once or twice in a lifetime. Make no mistake, the initial investment in this sector will only be for your maximum estimated capital, the money you can lose.
Even if you don’t want to invest at this time, gaining an initial idea about this new disruptive technology will keep you in a profitable position from our recommendations as you move forward.
Hope to see more news and specific proposals on the crypto trend as this journey begins at first it may seem like a foreign jungle. It is a volatile market and may not appeal to all investors, but crypto trade if you are ready and when.