Beginner’s Guide: All You need to Know About Cryptocurrency
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Are you one of the millions of people that still wonder what cryptocurrency means or you are yet to tap from the multimillion dollars investment that is fast gaining ground across the globe?
If yes, you might want to read this post till the end.
Cryptocurrency is a digital asset that serves as a medium of exchange duly incorporated into a computerized database known as blockchain.
There are more than 1,000 coins in the crypto world with Bitcoin being the first, since the release of Bitcoin in 2009, other coins have begun to surface.
How does Cryptocurrency operate?
Cryptocurrency is a digital currency that is traded as a means of exchange or basically to make profits.
It gained popularity due to its lack of centralization; transactions are completed automatically without the need for a central authority to approve same this was made possible through the use Blockchain.
According to Coinmarketcap, the total value of all cryptocurrencies as of January 27 2021 was more than $897.3 billion.
Challenges of cryptocurrency
While cryptocurrency is fast-growing, it is no doubt without its challenges. Crypto challenges arise from how it came to be.
A set of computer networks verify all cryptocurrency transactions and make it a block with subsequent transactions making it a Blockchain.
During verification, a subset of computer networks work together to solve a very difficult math puzzle, the result of the solution will make another block added to the Blockchain.
They are in turn rewarded with Bitcoins. This process is known as mining. However, instead of chipping off bits of rocks, computers solve very complex math puzzles to earn coins.
Since the process involves many computer networks, it cannot be manipulated by a single computer network. To regulate the price of Bitcoin, the math puzzle becomes more complicated when more computer networks join the process.
The Bitcoin mining process is projected to continue till there is a 21million Bitcoin in circulation which is set to occur in 2140, all things being equal. When this happens, it will become redundant without newer productions.
How to start Cryptocurrency investment
There are four simple step guides on how to begin harvesting the goodies of cryptocurrency.
Choose an exchange to trade with
The same way you need a bank to operate your fiat currencies, you need a platform for your crypto exchange.
To begin to trade, you must register and save some money in your account.
Coinbase and Binance are forms of exchange platform where cryptocurrencies can be traded.
Some of these platforms are prone to hacking there by leading to loss of money by investors while some may close down their platforms without prior notice.
If you are just earning the rope, you may want to try platforms that are well known with great user reviews.
Choose a Cryptocurrency wallet
there are two things involved in trading: actual trading and storage.
With the daily increase in the number of crypto investors, there is a need to store assets. Wallets are used to store assets as well as for sending and receiving coins from other investors.
There are various types of crypto wallets ranging from mobile, desktop and hardware.
You need to decide on the one you want to use; although mobile app is more preferable due to its mobility.
Once you’ve chosen the crypto wallet you want to use, you are all set to begin a journey to becoming a digital trader!
Learn more about Cryptocurrency
To become successful in any trade one must understand how the trade works
In cryptocurrency, it is much more complicated. Prices of coin change every second.
A crypto investor must be abreast of information and know when to trade and when not to.
He must understand the force that enables changes in market trend. Various events contribute to change in prices which an investor must take note of. We are dedicated to providing updates on a market index, news, expert talks, and how to trade crypto from time to time.
Also, other crypto-related blogs such as: coindesk, The markle, Hackernoon, News Bitcoin provide news on crypto.
You can as well join social media groups that are crypto-related. Doing this will reduce your chances of experiencing a loss.
Use technology to enhance productivity and mitigate risk
With the recent upsurge in the use of technology, it will be of great disservice to not avail yourself its use in aiding your crypto trading.
Apps such as Blockfolio and Trading View provide insights on the rise and fall of prices across all coins. What else do you require to begin a crypto business?
While the traditional fiat exchange is known to many, there is a paradigm shift in means of exchange which is what cryptocurrency introduces.
There are suggestions that cryptocurrency is set to replace fiat exchange system. While this may sound unattainable, it is best for you to learn how to trade with crypto so as not be left behind in the new norm.
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