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Everyone has heard how Bitcoin and other cryptocurrencies turned those who bought a year ago into millionaires. Profits of 1,000% or more are not only possible, but common with many of these cryptocurrencies. Someone who bought bitcoin for less than $ 500 in May 2016 would have made a 1,400% profit in about 17 months. Then in the past few days we saw Bitcoin lose nearly $ 1,000. To say these cryptocurrencies are volatile would be a massive understatement.
Since the introduction of Bitcoin in 2008, we at Trend News have been skeptical of the viability of cryptocurrencies as they pose a very clear threat to governments that want to see and tax all transactions. But while we may still be wary of the actual cryptocurrencies, we are very much aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will significantly change the way data is managed and that it will affect every sector of the global economy, much like the Internet has affected the media.
Here are some questions and answers to get us started …
Q: What are cryptocurrencies?
The best-known cryptocurrency (CC) is BITCOIN. It was the first CC launched 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 do CCs work?
CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Since every blockchain database is widespread, it is considered immune to hacking as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often referred to as “miners”, who validate transactions. A CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will publish more details in the upcoming news.
Q: What is BLOCKCHAIN?
Blockchain is the technology on which all CCs are based. Every transaction for buying, selling or exchanging CCs is entered into a BLOCK which is added to the chain. This technology is complex and will not be discussed here, but it has the potential to revolutionize the financial services industry by making transactions quick and easy, reducing or eliminating fees. The technology is also being tested for applications in many other industries.
Q: Are CC Exchanges regulated by the government?
Most of the time the answer is NO which is a huge draw of this market for some users. It’s the “Wild West” right now, but most developed country governments are studying this market to decide what regulation might be needed. A big decision is whether to treat CCs as currency or as a commodity / security. Canada and the US have so far made CCs legal, but the reporting and tax implications remain fluid. Crypto TREND will follow these developments and report on them.
Q: How do I invest in this market?
You can buy, sell and trade CCs using the services of specialized “exchanges” that act as brokers. You start by choosing an exchange, setting up an account, and transferring fiat currency to your account. You can then BUY and SELL your CC orders. There are many exchange opportunities around the world. Opening an account is pretty easy and these exchanges all have their own rules for initial funding and withdrawals.
Crypto trend will recommend CC Exchanges in the future.
Q: Where do I keep my CC?
In order to be able to move your cryptocurrencies freely and pay bills, you need a digital wallet. These wallets are available in different formats, e.g. B. desktop, cloud-based, hardware (USB), mobile phone and paper. Many of them are FREE, but security is a big factor as nobody wants to lose their wallet or get stolen. 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 cryptocurrencies for some financial transactions like transferring money and paying bills. The list of companies accepting cryptocurrencies 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?
To start off, we’ll keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As mentioned earlier, we believe that cryptocurrency technology will be a game changer and potential investment opportunities like this one will pop up once or twice in a lifetime. Make no mistake, an early investment in this sector is only for your most speculative capital, money that you can afford to lose.
Even if you don’t want to invest right now, understanding this new disruptive technology early on can benefit you from our recommendations in an advantageous position.
Expect more news and specific recommendations from Crypto TREND as we embark on this journey into an initially unfamiliar jungle. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide when you are ready.
Stay tuned!
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Source by Martin Straith