What is a cryptocurrency?
So what are these cryptocurrencies and why is it highly regarded as the money of the future? A cryptocurrency is a virtual currency and a method of payment. It uses cryptography so every transaction is secured and protected from forgery or modification. Each digital currency has a unique ID and for every transaction, it is carried out anonymously via the usage of special keys. The first cryptocurrency created was Bitcoin and this was invented by Satoshi Nakamoto in 2008 for the purpose of a peer-to-peer electronic cash system.
A peer-to-peer network prevents double-spending and is completely decentralized which means that there is no central authority or server managing it and this is what Nakamoto was able to achieve. He was able to develop a digital cash system without a central entity so instead of having to send money from centralized companies to another such as banks), you can transact them directly in a peer-to-peer decentralized network anywhere with a much faster processing time and significantly lower costs.
A large investing opportunity
You’re probably here because you’ve heard or read about Bitcoin and other cryptocurrencies and the huge potential to make money from this lucrative industry but don’t know where to start. Today, this emerging industry has become a global phenomenon known to most people. A lot of digital currencies have already increased in value and most of them have gone mainstream receiving wider news coverage just like other profitable assets in the market which means that this industry is here to stay. And as it has become a form of asset that promises to preserve and increase its value over time, it has opened a large number of investment opportunities.
The cryptocurrency mania
The madness on the cryptocurrency market continues with Bitcoin, Ethereum, Ripple, Dash, Litecoin, Monero and new coins reaching all-time highs. In fact, many market analysts have started labeling them as “digital gold” as its scarcity and huge price rises make them highly valuable assets offering promising returns. And if you don’t want to be left out then you definitely need to learn at least about the fundamentals on how to buy, sell and trade cryptocurrencies.
Which cryptocurrency to choose?
There are over 1300 cryptocurrencies and while most of them are surging in value, it’s actually difficult to say which one is the best for an investment but what’s for sure is these digital currencies are the hottest investment right now. You can use different investment strategies and the first one is to invest those that have the highest market capitalization. As with other investments, diversifying is a good strategy so your winnings can make up for your losses.
Is it easy?
Absolutely yes! When you think about investing, the first thing that would possibly come into mind is that it’s complicated and that professionals are the only ones who can make money out of it. Such thought is reasonable because nobody wants to end up becoming a vegetable especially when your hard-earned money is involved and more importantly if you’re a beginner in this field. For sure, there are complicated methods and techniques in the world of investing but we’re not going to tackle this area. We’re focusing on those areas that are easy that even a newbie can fully understand.