Cryptocurrencies, also known as digital currencies, have been exploding in popularity recently, gaining widespread interest from both speculators and investors. By some accounts, it’s easy to see why; the value of cryptocurrencies has skyrocketed in recent years, with Bitcoin, the first cryptocurrency ever created, hitting an all-time high of over $3,000 per coin in December 2017 alone. With that kind of growth potential, it’s no wonder so many people are looking to get into the crypto market!
What is cryptocurrency?
Cryptocurrency is a type of digital currency that is used as medium of exchange for goods or services. The crypto trading is one of the safest ways of transferring funds because all the fundings are tracked and maintained by decentralized network. But in many countries like Pakistan cryptocurrency is not legal because the sending and receiving can also be between countries within milliseconds. Many countries see this as a threat of money laundering.
One of the features of crypto currency is, it is not issued by any central authority and is immune to government. Crypto market was very active in 2017. But crashed during 2018 when many coins lost their value. Recently, crypto market has been rising again, which could be due to some factors such as recent credit card hacks, Bitcoin mining companies shutting down etc. The hackers obtained data from over 30 million credit cards from many retailers including Home Depot, Walmart, Target, and Starbucks; hence crypto traders have turned to Bitcoin instead of using these hacked cards.
Bitcoin miners who have shut down recently include Bitmain Technologies Ltd., Canaan Creative Corp., Ebang International Holdings Inc., HashRabbit Corp., and SolarMiner LLC.
How do cryptocurrencies work?
Crypto currency runs over a network or system known as blockchain. This currency is created via a process of mining unlike other printing of currencies. Anybody can basically create crypto currency. The process of mining uses a computer system processing that solves complicated mathematical problems. If you don’t want to create, you can also buy these currencies from brokers or crypto wallets like coinbase.
The most well-known currency is bitcoin which got first rise in 2009. Now in 2022, there are a lot of currencies which are used for trading and other financial assets.
For example, Compared to other coins, Ethereum is a currency with a stable value. Ethereum is immune of geting too much fluctuation in prices. The blockchain technology behind Ethereum allows people to use it for any transaction related process without any third-party interference.
Who invented cryptocurrencies?
Supposedly, there are three founders of cryptocurrency – Bitcoin was founded by Satoshi Nakamoto, but we know very little about him. They never confirmed his identity.
Bitcoin was created for the purpose of exchanging money and is an electronic currency. Bitcoin was the first of its kind and was released in 2008. For two years, Satoshi stayed involved in the community for the development of blockchain, and in 2011, he was honored with a last message unveiled in 2010. I’ve moved on to other things, it read. The community has tried to find out more information about him, but no one can confirm or deny anything because they don’t have any records that match that name.
According to technology experts and scientists like Elon Musk, Bitcoin is not sustainable enough as a currency because it’s too slow. People have been warned against investing in bitcoin because there’s no guarantee that bitcoin will be worth something next year since it fluctuates so much.
Should I invest in cryptocurrency now?
Cryptocurrency can be termed as high-risk gamble. If you are good and willing to take the risk then it can also be much benefit if awarded. before investing into cryptocurrency always remember, there could be high chance of losing all your money. After covid-19, bitcoin and other cryptocurrencies prices have been falling.
It is necessary before investing into crypto you go with open eyes. The risk of investing in crypto includes volatility, scams, fake promises of high return, no compensation scheme and much more.
If you are not in mood of facing any of these troubles, then it is better you avoid investing into crypto. But if you have a brave heart and want to risk your hard earned money, then there are few steps need to follow before investing into crypto market.
Some commonly known cryptocurrencies
Top cryptocurrency coins in 2022 are:
3. Polka Dot
7. Binance coin
8. Ripple’s XRP
What are average returns for cryptocurrencies?
There is no assurance a cryptographic money will stay in real life over the long haul.
For instance, of the main 10 digital currencies by market esteem in 2013, just seven are as yet working today.
In 2013, one bitcoin was worth just shy of $112, and had an all-out market worth of simply more than $1.2bn. On May 16, 2022, one bitcoin is worth about $30,000 and has a complete market worth of $1.3trn.
One litecoin was valued at $3.38 quite a while back. In April 2021 it directed a worth of about $245 per coin. Presently it is valued at $67.
Devcoin, novacoin and CHNcoin are not generally recorded by Coinmarketcap, while two of the 10, freicoin and terracoin , have really fallen in esteem in the mediating time; terracoin merits a division what it was in 2013.
So purchasing more modest coins and clutching them as a drawn out speculation isn’t really going to make anybody any genuine cash.
There is a steady stream of new digital forms of money entering the market. Dogecoin is only one ongoing model that took off in May 2021 however has attempted to support financial backer energy.
Where can I buy these popular currencies?
Especially assuming you’re new to the thought, the universe of digital currencies can unnerve and bewilder. There are such of advanced monetary forms out there, with their own arrangement of decides. In any event, comprehending digital currencies, you actually need to sort out which stages are real. This guide will assist you with sorting out some way to start utilizing crypto successfully, no tricks permitted!
We already have a blog on top 4 crypto trading platforms https://techluts.com/the-top-4-real-cryptotrading-platforms-no-scams-allowed/
You can buy all popular currencies from these platforms with 100% guarantee of no scams or fraud.