Everyone has heard that Bitcoin and other cryptocurrencies made millionaires a purchaser a year ago. Not only are they likely to receive 1,000% or more, they are commonplace in many of these cryptocurrencies. If someone buys Bitcoin for less than $500 in May 2016, he will earn 1400% in about 17 months. Then in the past few days, we have seen Bitcoin lose nearly $1,000, so it is an understatement to say that these cryptocurrencies are volatile.
Since the advent of Bitcoin in 2008, we have been skeptical about the viability of cryptocurrencies in trend news because they pose a very obvious threat to governments that want to view all transactions and tax them. However, although we may be cautious about the actual cryptocurrency, we are very aware of the potential of supporting the underlying technologies of these e-currencies. In fact, we believe that this technology will greatly undermine the way data is managed and will affect all areas of the global economy, just as how the Internet affects the media.
Here are some questions and answers to help us get started…
Q: What is cryptocurrency?
The most famous cryptocurrency [CC] is bitcoin. It was the first CC and started in 2008. Today, there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, which are all "virtual". There are no "physical" coins or currencies.
Q: How does CC work?
CC is a virtual currency that exists in a very large distributed database. These databases use the BLOCKCHAIN technique. Because each blockchain database is widely distributed, it is considered to be free from hacking because there are no centralized points of attack and each transaction is visible to everyone on the network. Each CC has a set of administrators who verify transactions, often referred to as "miners." A CC called Ethereum uses a "smart contract" to verify the transaction. Encryption trends will provide more details in upcoming news publications.
Q: What is a blockchain?
Blockchain is the technology that supports all CCs. Each transaction that purchases, sells, or exchanges a CC enters a BLOCK that is added to the chain. The technology is complex and will not be repeated here, but it has the potential to revolutionize the financial services industry because transactions can be executed quickly and easily, reducing or eliminating costs. The technology is also being studied in many other industries.
Q: Is the CC exchange regulated by the government?
In most cases, the answer is no. For some users, this is a big attraction for the market. It is now "wild west", but most developed countries' governments are studying this market to decide what kind of regulation may be needed. A major decision is whether to consider the CC as a currency or a commodity/securities. So far, Canada and the United States have declared the legitimacy of the CC, but the situation in reporting and taxation remains unstable. Encryption trends will focus on and report on these developments.
Q: How do I invest in this market?
You can purchase, sell and exchange CCs using a special "exchange" service that acts as a broker. First, select an exchange, set up an account, and transfer the legal currency to your account. You can then place an order and purchase a CC. There are many exchanges around the world. Opening an account is very simple, and these exchanges have their own rules for initial funding and withdrawals.
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CC Exchange will be recommended in the future.
Q: Where is my CC stored?
In order to be able to move the cryptocurrency freely and pay the bill, you will need a digital wallet. These wallets come in several formats, such as desktops, cloud-based, hardware [USB], mobile phones and paper. Many of them are free, but security is an important factor because no one wants to lose their wallet or be stolen. Encryption trends will recommend digital wallets in the future.
Q: How do I use CC?
In addition to investing in CC products, you can also use cryptocurrencies for certain financial transactions, such as remittances and payment bills. The list of companies accepting cryptocurrencies has grown rapidly, including Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What is the next step?
In the beginning, we will make each Crypto TREND article short and narrow as much as possible. As mentioned earlier, we believe that cryptocurrency technology will change the rules of the game, and such potential investment opportunities will occur once or twice in a lifetime. There is no doubt that early investment in the industry will only be used for your most speculative funds, and you can afford the money you lose.
Even if you don't want to invest at this time, an early understanding of this new disruptive technology will put you in a good position to benefit from our advice as we move forward.
As we begin the first step of this journey, we hope to get more news and specific advice from Crypto TREND. This is a turbulent market that may not appeal to all investors, but if it is ready, Crypto TREND will be your guide.