Everyone has heard that Bitcoin and other cryptocurrencies have made millionaires the ones they bought recently a year ago. Gains of 1,000% or more are not only possible, but common to many of these cryptocurrencies. Someone who bought Bitcoin in May 2016 for less than $ 500 would have a profit of 1,400% in about 17 months. Then in recent days we have seen Bitcoin lose almost $ 1,000, so to say that these cryptocurrencies are volatile would be a great understatement.
Since the emergence of Bitcoin in 2008, we at Trend News have been skeptical of the possibility of cryptocurrencies for survival, since they represent a very clear threat to governments that want to see and tax all transactions. But while we are still cautious about actual cryptocurrencies, we are very aware of the potential of the underlying technology that drives these electronic currencies. In fact, we believe that this technology will be a significant disruption in data management and will affect every sector of the global economy, much like the Internet has affected the media.
Here are some questions and answers to get started …
Q: What are cryptocurrencies?
The most famous cryptocurrency (CC) is BITCOIN. It was the first CC, started in 2008. Today, there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all "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 every Blockchain database is widely distributed, it is considered immune to hacking because there is no central point of attack and every transaction is visible to everyone online. Each CC has a group of administrators, often called "miners," who validate the transactions. One CC called Ethereum uses "smart contracts" to confirm transactions. Crypto TREND will provide more details in the upcoming news.
Q: What is BLOCKCHAIN?
Blockchain is a technology that supports all CCs. Each transaction for the purchase, sale or exchange of CC is entered into a BLOCK that is 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, as transactions can be executed quickly and easily, reducing or eliminating fees. The technology is also being tested for application in many other industries.
Q: Are CC exchanges regulated by the government?
Mostly the answer is NO, which is a big attraction for this market for some users. Currently, it is the "wild west", but governments in most developed countries are testing this market to decide what regulation may be needed. It is a big decision whether to treat CC's currencies or commodities / securities. Canada and the US have so far stated that CCs are legal, but the situation is still fluid in terms of reports and tax implications. Crypto TREND will monitor and report on these developments.
Q: How do I invest in this market?
You can buy, sell and trade CCs using the services of specialized "Stock Exchanges" that act as brokers. You start by choosing Exchange, setting up an account and transferring a fiat currency to your account. Then you can place your BUY and SELL CC orders. There are many exchanges around the world. Opening an account is quite simple and all these exchanges have their own rules for initial financing and withdrawal.
TREND crypto will recommend CC exchanges in the future.
Q: Where do I keep my CC?
To have the freedom to move your cryptocurrencies and pay your bills, you'll need to have a digital wallet. These wallets come in several formats, such as desktop, cloud, hardware (USB), mobile phone and paper. Many of them are FREE, however, security is a big factor because no one wants to lose their wallet or steal it anymore. Crypto TREND will recommend digital wallets in the future.
Q: What can I do with my CC?
In addition to investing in CC products, you can also use cryptocurrency for some financial transactions, such as cash transfers and bill payments. The list of companies that accept cryptocurrency is growing rapidly and includes big hitters like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What's next?
As we begin, we will keep each of the Crypto TREND articles shorter and keep the scope of each as narrow as possible. As noted earlier, we believe that cryptocurrency technology will be a game changer, and potential investment opportunities like this come once or twice in a lifetime. Make no mistake, early investing in this sector will only be for your most speculative capital, money you can afford to lose.
Even if you do not want to invest at this point, an early understanding of this new devastating technology will put you in a good position to profit from our recommendations.
Expect to see more news and specific recommendations from Crypto TREND as we embark on this journey into what may initially look like a jungle side. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.
Stay with us!