Maybe you already heard about how people got rich overnight investing in cryptocurrency. Let’s find out what cryptocurrency is and why is everyone so crazy about it.
So what makes cryptocurrency so catching and how can you buy one?
A cryptocurrency is a virtual coin that people use as payment exchange over the internet.
Cryptocurrencies are located in databases with special rules. Those rules decide the way people can have it.
It is important to know that not people decide this, but mathematical formulas.
These have become a trend and more and more people around the world are interested in these coins.
At present, Cryptocurrencies are more used as an investment to generate earnings online.
Straightforward, look at a bill with Abraham Lincoln, worth $5. That’s the convention because, in essence, the bill is a piece of plastic that has a specific value.
Well, a cryptocurrency is a code that is worth a certain amount. Likewise, because that’s the convention.
A cryptocurrency uses cryptography, a branch of mathematics dealing with information security, that’s why for many cryptocurrencies offers much more security.
Tokens bank account
When you buy cryptocurrency, you will need a digital wallet. Each virtual wallet has a “private key” resulting from cryptography. This private key prevents the access of another person to the transaction, making transactions extremely secure.
Where to buy a virtual coin?
Choose a firm exchange that you can purchase a cryptocurrency. These exchanges may have commissions to buy, withdraw, or have zero commissions, but they can set the price of a cryptocurrency.
Some coins can be bought with real money like the dollars or euro. Others can only be bought with other tokens in return.
Like any desired asset, there are also scams in the world of digital money. So before you decide to invest, read everything you find about them, so you can distinguish between good and scams.
Be cautious about the currency of an online business that proposes investments with cryptocurrency for a sum of money.
If you are not sure of a cryptocurrency you can check it in the cryptocurrencies bible, known as coinmarketcap.com, on this site you can find out all about cryptocurrency and their availability for online trading.
Sure you’ve heard about Bitcoin, it’s one of the most famous cryptocurrency. At this point, Bitcoin is the most expensive virtual coins and probably the most used. Its main purpose is trading.
But there are a few hundred tokens alternatives and the most important are:
What’s so special about them?
- Each cryptocurrency owner keeps a copy of all transactions. This means that you as the owner, when you give your friend “John” some virtual cash, the system in which is created, retain that token and every person on the network finds out that it has changed its owner.
For this reason, you cannot offer both “John” and your friend “Daniel” the same token.
All transactions are recorded in an accounting book that is out of sight and cannot be falsified.
- Canceling transactions is impossible, once you give a cryptocurrency you cannot take it back
- You can make transactions without associated your personal details with it. However is a more pseudonymous system rather than anonymous, because encryption within a digital wallet is not related to people but by one or more specific keys (or “addresses”).
- Thus, encryption owners cannot be identified, but all transactions are available to all in the network.
- They are fast, transactions are made in minutes and transmitted to any part of the world where there is internet
- Low and variable transaction fees, the commission for a cryptocurrency transaction is 0.1 of its value.
A cryptocurrency exist in limited quantity, their algorithms control the quantity and the ratio between supply and demand gives the value of a virtual coin.
It’s a real Craziness that is happening right now in this battlefield of virtual coins. Lots of it have grown to amazing levels, 3,475%, 7,367%, even 21,611%, so those who invest had some amazing returns.
But you need to know something important. Not all of these coins will continue to increase their long-term price. Even if they are good cryptocurrency, built correctly (in terms of code), many of what exists today will lose their worth.
New coins appear quite often and you have to be very aware of what you are doing. Before you invest in virtual coins, you need to study and know their technology.
For example, in the financial world, it is valuable, that virtual tokens that have the signaling code listed on the Stock Market.
Investing in cryptocurrency is your decision, that has both advantages and disadvantages. We consider its important for you to know about the new coins, but we do not offer any investment advice.
If you are looking for alternatives to earn money online, you can read our reviews about companies that offer a more stable option.
But if you are interested in cryptocurrency and want to take advantage of your passion, take a look at this place, Wealthy Affiliate. Here where you will connect with other online entrepreneurs of all types. More you will find tips on how to make money from cryptocurrency, other than investing in them.
If you have any other questions about cryptocurrency or other related topics on work-from-home online please feel free to leave a message in the section below