Cryptocurrency has been popular these days that nobody can stop talking about it. It is one of the volatile currencies available. Crypto-mining has also taken its fair share of interest and people have started to mine from their homes. So what is Cryptocurrency?
Cryptocurrency or Crypto is a digital asset that works as a medium for exchange. Usually, these Cryptocurrency addresses are stored in a computerized database using strong cryptography to secure transactions, verify ownership and add or mine more coins. A Cryptocurrency is a decentralized currency system that does transactions through distributed ledger technology or blockchain that serves as a public financial transaction database.
Cryptocurrency is legal in the majority of countries today(as of Feb 2021). That more businesses have started to accept them as payment. There are multiple Cryptocurrencies in the market Bitcoin, ethereum, Litecoin, Bitcoin cash, Aave, etc. only to name a few. Bitcoin has the highest trading value(Feb 2021) with one bitcoin being around $51033.40.
It is predicted that Bitcoin might still go up in value and we might see more investors and miners participating in cryptocurrency trading. Now that people like Elon musk have started to endorse Bitcoin there has been a relative increment in activities surrounding cryptocurrencies in general. There are over 6700 different types of cryptocurrencies in the market right now. The total value of all cryptocurrencies on Feb. 18, 2021, was more than $1.6 trillion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was pegged at about $969.6billion.
Best cryptocurrency by market value capitalization.
What are best cryptocurrency investment?
Before investing in Cryptocurrency one should know about the volatile market structure. Many investors have steered clear of the Bitcoin industry because any currency needs stability. Warren buffet compared these to paper checks and said
“It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
So if anyone sees Cryptocurrency as the future currency, note that it needs stability so that the merchants and consumers can determine what a fair price for the goods is. Cryptocurrencies like Bitcoin have been volatile being around $6000 at December 2020 and the current value is above $50,000. Factors like these should be made into consideration while investing in any cryptocurrency.
But it is predicted that Cryptocurrency value might increase in the future and it is expected for people to circulate rather than investing as the value might increase in future.
how to buy cryptocurrency?
Before you begin in investing crypto you must have a cryptocurrency exchange account, personal identification documents if you are using a Know Your Customer (KYC) platform, a secure connection to the Internet, and a method of payment. It is also suggested to have a personal wallet outside of the exchange account. Cryptocurrencies can be bought using credit cards, debit cards, and bank transfers. It is very important to keep your Cryptocurrencies safe, as the risk of getting lost is high. Anybody with the address can or wrong entry of address during Cryptocurrency withdrawal or deposit might result in permanent loss of the money.
Are Cryptocurrencies legal?
Cryptocurrencies are legal in more than 50 countries including Japan, India, the USA, UAE, and Australia. The legality of cryptocurrencies has been gradually increased and depends on the country with restrictions on each cryptocurrency.
What are the best wallets to store cryptocurrency?
When it comes to choosing wallets there are multiple options available two popular options are Hot wallets and Cold wallets. Online wallets are also known as “hot” wallets. Hot wallets are wallets that run on internet-connected devices like computers, phones, or tablets. The simplest description of a cold wallet is a wallet that is not connected to the internet and therefore stands at a far lesser risk of being compromised. These wallets can also be referred to as offline wallets or hardware wallets.