Everyone has heard how Bitcoin and other cryptocurrencies made buyers millionaires like they did a year ago. Earning 1,000% or more is not only possible, they have been in common with many of these cryptocurrencies. Anyone who bought Bitcoin for less than $ 500 in May 2016 would have made a profit of 1,400% in about 17 months. Then, over the last few days, we’ve seen Bitcoin lose about $ 1,000, so it would be a big humiliation to say that these cryptocurrencies are volatile.
Since the advent of bitcoin in 2008, we at Trend News have questioned the viability of cryptocurrencies, given that they pose a very clear threat to governments seeking to see and tax all transactions. However, while we can still be cautious about actual cryptocurrencies, we are well aware of the potential of the underlying technology that strengthens these electronic currencies. In fact, we believe that this technology will be a significant disruptor in data management, and it will affect every sector of the global economy, just as the Internet affects the media.
Some questions and answers to get started …
Q: What are cryptocurrencies?
The most popular cryptocurrency (CC) is BITCOIN. This was the first CC to start in 2008. Today, there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and all of them are “virtual”. There are no “physical” coins or currencies.
Q: How does CC work?
CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is so widespread, it is thought to be immune to hacking because it is not the focal point of the attack and every operation is visible to everyone on the network. Each CC has a group of managers, often called “miners,” who approve operations. A CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more information in upcoming news releases.
Q: What is a blockchain?
Blockchain is the technology behind all CCs. Each transaction for the purchase, sale or replacement of CCs is included in the BLOCK added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry because operations can be performed quickly and easily, reducing or eliminating payments. The technology is also being tested for applications in many other industries.
Q: Are CC Exchanges regulated by the government?
In most cases, the answer is NO, for some users this is a great attraction of the market. It is currently the “wild west”, but governments in most developed countries are exploring this market to decide what regulation may be needed. A big decision is to treat CCs as currency or commodity / security. Canada and the United States have so far declared CCs legal, but the situation remains volatile in terms of reporting and tax implications. Crypto TREND will monitor and report on these developments.
Q: How can I invest in this market?
You can buy, sell and exchange CCs using the services of specialized “Exchanges” acting as a broker. You start by selecting Exchange, creating an account and transferring fiat currency to your account. You can then place your AL and SAT CC orders. There are many exchanges in the world. Opening an account is quite simple, and all of these exchanges have their own rules for initial financing and withdrawal.
Crypto TREND will recommend CC Exchanges in the future.
Q: Where do I store CC?
You must have a digital wallet to be free to transfer your cryptocurrencies and pay bills. These wallets come in several formats, including desktop, cloud-based, hardware (USB), cell phones, and paper. Many of them are FREE, but security is a big factor because no one wants to lose or steal their wallet. Crypto TREND will recommend digital wallets in the future.
Q: What can I do with CC?
In addition to investing in CC products, you can also use cryptocurrency for some financial transactions, such as money transfers and account payments. The list of companies accepting cryptocurrency is growing rapidly and includes large companies such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: Then what?
To get started, we’ll keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As mentioned earlier, we believe that cryptocurrency technology will be a game changer and that such potential investment opportunities will be one or two times in a lifetime. Make no mistake, an early investment in this sector will be only for your most speculative capital, the money you can lose.
Even if you don’t want to invest right now, an early understanding of this new destructive technology will put you in a position to take advantage of our recommendations as you progress.
Expect to see more news and special recommendations from Crypto TREND as you embark on this journey that may at first seem like a foreign jungle. This is a volatile market and may not attract all investors, but Crypto TREND will be your guide when you are ready.