Fintech or blockchain continues to be in the news. There are many headlines from people who become millionaires overnight to articles about industries views on financial transactions. Although often viewed as an unstable market, it still has high interest. Coinbase reports that between 70,000 and 100,000 new cryptocurrency trading accounts are opened on their platform every day.
What is Cryptocurrency
The word cryptocurrency is a combination of the words currency and cryptography.
- Currency, This exchange channel allows people to exchange their labour for something valuable that they can exchange in exchange for goods and services.
- It converts understandable text to unintelligible for confidentiality, integrity and authentication purposes.
- When you combine the two, the result is a digital medium of exchange which uses encryption for security.
Know These Good Cryptocurrency Terms:
The transactions are recorded in digital token blocks and then cryptographically signed (hence "crypto" currency), making them completely secure. Cryptocurrencies are digital blocks that have been cryptographically sealed (thus the name "crypto" currency). They can be used to make purchases, invest or accept payments.
Solved: Double Spending
That was because blockchain, the technology behind cryptocurrency, solved the problem of double-spending, a fraud technique that involves spending the same amount more than once. The two transactions will cancel out each other if someone attempts to use the same cryptocurrency twice by using two different transactions in the same block.
Key
You're given a password or secret key when you purchase or receive cryptocurrency, such as Bitcoin. That proves you own a specific amount of Bitcoin to use or spend as you, please. Your key will prove to the network that you can spend Bitcoin. Every transaction is recorded in a record that shows who has what. This record is known as "blockchain".
Use Wallets to Store Assets
Keep your password or key safe. Anyone who finds your key could gain complete, irreversible access to your cryptocurrency. You can keep your cryptocurrency secure with cryptocurrency wallets. You can choose between several different online and offline wallets where you are able to 'download your cryptocurrency'. These include desktop, mobile, hardware, and paper wallets.
Ten Facts you Need to Know About Bitcoin
Cryptocurrencies are constantly changing, and people around the globe are paying attention. Crypto investors, whether experienced or new to the world of cryptos, always look for interesting facts.
Cryptocurrency was in the news. That led to an increased interest in learning how to purchase cryptocurrencies. No surprise some investors want to know more about digital assets. With cryptocurrencies, the truth is sometimes stranger than fiction.
1. Pizza was The First Bitcoin Commercial Transaction
On May 22, 2010, a man from Florida bought two Papa John's Pizzas with around 10,000 Bitcoins. It was the first Bitcoin transaction for goods. At the time, it was valued at around $40. It is generally accepted that this was the first Bitcoin commercial transaction. You'd become a Bitcoin billionaire if you owned that many Bitcoins by September 2022. In the current market, approx 10,000 bitcoins are worth over $190 million.
2. More than 18000 Cryptocurrencies Exist
As of October 2022, there will be over 18 000 digital currencies available. Some digital currencies are not available through exchanges and require their wallets. Many altcoins, such as USDT (USDT), XRP(XRP), Solana(SOL), Binance USD ($BUSD), etc., are included.
It is easy to distribute and create new cryptocurrencies, explaining why many different coins and tokens exist. As of October 20, 2022, the 20 top virtual currencies will account for 87% of cryptocurrency's market capitalization.
3. Bitcoins are Limited in Number
A fascinating fact about Bitcoin is that it was created with the idea of a maximum limit of 21,000,000 coins. The miners of cryptocurrency will be prevented from generating any more bitcoins. There are currently approx 19,15 million Bitcoins in circulation. There are still some bitcoins to mine, so mining remains a popular hobby.
4. Nigeria has the Largest Cryptocurrency Market in Africa
The adoption of crypto in Nigeria has grown exponentially. The constant depreciation in the Naira has led to more than half of Nigerian adults trading crypto every month. Many prefer digital currency to fiat money. Some even go as far as to buy airtime using crypto wallets.
Many Nigerians still trade cryptocurrencies despite the ban imposed by Nigerian authorities on cryptocurrency in 2021. Merchant Machines' data suggests Nigeria will likely be the leader in global crypto adoption before 2030.
5. Ethereum Gas Fees are What we call them
Gas is required when using Ethereum to make transactions. Gas is the computing effort required to purchase and sell Ethereum on the Ethereum network in Nigeria. Gas is required to use the network, whether for an app or a transaction, such as converting another currency to ether. Gas fees are dependent on how much traffic and transactions there are on the blockchain.
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6. The NFTs don't Count as Currency
Although they are digital assets and have grown in popularity since 2021, NFTs aren't cryptocurrencies. These tokens aren't used for exchange. The NFTs cannot be duplicated or divided. The NFTs are a good alternative investment, similar to collectables or artwork. Some people even see NFTs as digital artwork and collectables that could increase in value.
7. Dogecoin was Originally a Joke
Dogecoin was one of the most popular cryptocurrencies for 2021, as its capitalization increased partly because Elon Musk supported it. Recently, it replaced Cardano ADA to become the sixth-largest cryptocurrency in the world. This cryptocurrency was initially a joke.
Dogecoin was created around the image of a Shiba Inu dog that looked surprised. The creators created dogecoin around an image of a surprised Shiba Inu dog. In 2013, when dogecoin first appeared, this meme was very popular.
8. Bitcoin's Creator (or its creators) Remains Anonymous
Satoshi Nakamoto, an anonymous pseudonym, created Bitcoin. Unknown is the author of a protocol paper distributed via an email list for cryptography. Many people speculate about Satoshi's identity, but nobody knows for sure. No one knows whether they are a person or a group.
9. Elon Musk is a Powerful Force when it Comes to Cryptocurrency Prices
Elon Musk's tweets and speeches about cryptocurrencies have caused a huge shift in the price of cryptocurrency in 2021. When he tweets about cryptocurrency or talks about it, the market notices it. His ardent fans do.
Musk's announcement of which currencies Tesla would accept to purchase cars has significantly impacted Bitcoin, dogecoin and the entire cryptocurrency market.
10. Some Countries ban Cryptocurrencies
Some countries do not allow the use of cryptocurrency. Some countries, like Turkey, don't accept cryptocurrency as payment, and others, like Nigeria, ban cryptocurrency exchanges. Although countries have the power to regulate service providers and close down exchanges, it is virtually impossible to ban cryptocurrency use. It's difficult to predict how the situation will evolve in the future, especially with the largest economy on the planet coming out against cryptocurrency.
Examples of Cryptocurrency
Many cryptocurrencies exist. There are many popular cryptocurrencies.
Bitcoin: Bitcoin, the original cryptocurrency launched in 2009, is the currency most often traded. Satoshi was the person or group who created this currency.
Ethereum: Ethereum, a platform for blockchains, was developed in 2015. It has its currency, Ether (ETH) or Ethereum. The most popular cryptocurrency after Bitcoin is Ethereum.
Litecoin: The currency has many similarities to Bitcoin, but it is more advanced regarding new developments. That includes faster payment and processing to enable more transactions.
Ripple: Ripple, a distributed ledger technology created in 2012, is an open-source system. Ripple is not limited to cryptocurrency transactions. It can also be used for tracking other types of transactions. Its company has worked with a variety of banks and financial organizations.
Altcoins: Altcoins are cryptocurrencies that do not use Bitcoin as their base currency. How to purchase cryptocurrency securely is something you may wonder about. Typically, there are three steps. Two steps are involved.
Step 1: Choose a Platform
First, you need to decide which platform is best for your needs. You can generally choose between using a cryptocurrency exchange or a broker:
- Traditional brokers. Online brokers offer a way to purchase and sell crypto and financial assets such as stocks, bonds and ETFs. They have lower costs but less crypto functionality.
- Exchanges of cryptocurrency. Cryptocurrency exchanges offer various services, including different currencies, storage options, interest-bearing accounts, and much more. Most exchanges have asset-based fees.
Compare the platforms based on their services, fees, security, withdrawal and storage options and educational materials.
Read More: The Best Method for Managing money and Controlling Cryptocurrency Risks
Step 2: Funding Your Account
After choosing your trading platform, you must fund your account to begin trading. Users can purchase cryptocurrency using debit and credit cards at most crypto exchanges. Some exchanges do not allow crypto purchases made with credit cards. Also, some credit card companies do not allow cryptocurrency transactions. Cryptos are volatile, and you don't want to get into debt or pay high transaction fees for credit cards.
Some platforms also accept ACH and wire transfer payments. Payment methods accepted and the time required to deposit or withdraw money vary by platform. The time it takes for deposits to be cleared varies depending on the payment method.
Fees are an important consideration. Fees include possible deposit and withdrawal fees as well as trading fees. Researching the fees will help you to determine which payment methods and platforms are charged. Place an Order
Orders can be placed via your broker's mobile or web platform or exchange. You can buy cryptocurrency by clicking "buy", selecting the type of order, entering how many cryptocurrencies you wish to purchase and then confirming your order. This same procedure applies to orders that are "sold".
Other ways of investing in cryptocurrency exist. Payment services like PayPal, Cash App and Venmo allow you to hold, buy or sell cryptocurrencies. There are also the following investments vehicles:
- Bitcoin Trusts: With a standard brokerage account, you can purchase shares in Bitcoin trusts. Retail investors can gain exposure to cryptocurrency through these vehicles.
- Bitcoin mutual fund: You can choose between Bitcoin ETFs or mutual funds.
- Stocks or ETFs in blockchain technology: Blockchain companies that are experts in this field can be used to invest indirectly in cryptocurrency. You can also buy ETFs or stocks of companies that use blockchain technology.
What are the Advantages of Cryptocurrency?
Cryptocurrency is one type of digital or virtual currency. Cryptographic systems secure them and can be used for safe online transactions. Crypto refers to several cryptographic algorithms and techniques that secure records. These include hashing functions, elliptical-curve encryption, and public and private key pairs. The Government of India does not support cryptocurrencies.
Globally, cryptocurrency has become popular among investors. Digital currencies like Bitcoin are becoming more popular due to technological advancements and industrialization. Cryptocurrency makes it easy to send money without the involvement of financial institutions or banks.
Here are a few other advantages:
1. Inflation Protection
The value of most currencies is declining due to inflation. Cryptocurrency is seen by many as a way to protect against inflation. Bitcoin is limited in the number of coins it can ever produce. As the increase in money supply exceeds that of Bitcoin's supply, Bitcoin will rise. Many other cryptocurrencies use the same mechanism to limit the supply and can also act as an inflation safeguard. Quantity-wise, the ASCII file specifies that there were only 21,000,000 Bitcoins. The value of Bitcoin will increase due to increased demand. That could keep pace with the market and even prevent inflation.
2. Transactional Speed
You can transfer funds or assets quickly from one account to another in several ways, for instance, if you live in the United States. Many people are attracted to the fact that cryptocurrency transactions can be completed in just a few minutes. In U.S. banks, most transactions settle in 3 to 5 days. Wire transfers are completed within 24 hours.
3. The Cost-Effective Transaction
The use of cryptocurrency can be used to transfer money globally. Transaction costs can be zero or minimal with cryptocurrency. The transaction costs are negligible, as there is no need to use third-party services like VISA for confirmation.
4. Decentralization
Cryptocurrency is a new decentralization money model. Also, they help combat the control of money and remove it from a monopoly. Crypto enthusiasts believe cryptocurrencies are safe and secure because no government organization can determine the value of the coins or the flow.
5. Diverse
Cryptocurrency investments can be profitable. Over the last decade, this market has grown tremendously. The price history for the crypto markets is limited, and so far, they are not related to any other market, like bonds or stocks. That makes cryptocurrency a great way to diversify your portfolio. You can get more stable returns if you mix assets with less correlation in price. If your stocks go down, your crypto assets might rise and vice-versa. Cryptocurrency is volatile, and if you have a heavy asset allocation in cryptocurrency, it could increase the volatility of your portfolio.
6. Accessibility
To use cryptocurrency, investors only need a computer with internet access or a smartphone. It is unnecessary to verify your identity, run a credit check or look at a person's background to create a wallet. The process is much faster than the old-fashioned financial institutions. The system allows users to send money to someone or make online transactions.
Read More: A Complete Guide to ICO for Beginners
7. Safety and Security
If you lose or forget your private key, no one can access your money. If you lose or forget your private key, you cannot recover any funds. The blockchain and the network of computer devices that verifies the transactions further secure the transaction. Investors are safer if they keep their crypto assets within their wallets. Public and private keys, proof of work and stake, and other incentive systems protect transactions.
8. Transparent
Due to its decentralized nature, blockchains allow you to view money transfers using the blockchain explorer. The open, transparent and corruption-free system provides investors with a sense of relief.
9. You can also Contact us by Email
A high level of confidentiality protects your account because no third parties are involved. Investors have a pseudonym and wallet address on the blockchain, as transactions are anonymous and do not reveal anything personal. Many coins are devoted to privacy to increase the privacy of cryptocurrency.
10. The Currency Exchanges are Easy
Investors can purchase cryptocurrency with currencies such as the U.S. Dollar, Indian Rupee, or European Euro. Using different cryptocurrency wallets, investors can trade cryptocurrencies and convert them with minimal transaction fees.
Ten Things to Know Before Investing In Cryptocurrency
In the last few years, cryptocurrencies have gained a lot of importance. Investors are constantly discovering new uses for digital assets. There are currently thousands of cryptocurrencies on the market. Bitcoin is the biggest and best of all. The current state of the cryptocurrency market scares investors. The growing popularity of the market has increased crypto investments. However, it might not be as easy to invest in cryptocurrency! Beginners should know and understand a few facts before diving into the cryptocurrency market. That includes the intense volatility which led to major cryptos like Bitcoin and Ethereum falling. Despite the volatility of crypto markets worrying investors, cryptocurrency investing is unlikely to slow anytime soon. This article lists the 10 most important things to know about cryptocurrency investment in 2023.
1. Cryptocurrency Is Unregulated And Decentralized
Unregulated and decentralized, cryptocurrency is. Cryptocurrencies are unregulated and decentralized. The fact that cryptocurrencies aren't regulated or controlled by central authorities increases the risk of fraud and scams. Experts believe, however, that 2023 will see new regulations on the crypto market.
2. Extremely volatile
Due to extreme volatility, large-scale and trusted investments such as Bitcoin and Ethereum lost significant portions of their value. Investors are unaware of the best way to manage volatility to meet their needs without losing huge amounts of money.
3. Analysis of Market Sentiments
Purchasing and selling cryptocurrency reveals what customers think about certain digital assets. The market's sentiments can be gauged by how cryptos are bought and sold, their increasing mainstream acceptance, or how other users use them. Such investments are important for beginners as they show which crypto has the highest potential to generate profits.
4. Maintaining a Crypto Portfolio
Investors who want to invest in cryptocurrencies must spread their funds across various digital assets. It is important to include both less volatile assets and volatile but high-reward ones like Bitcoin in the assortment. Diversifying your portfolio can help you to enjoy profits over a long period.
5. Analyzing Various Crypto Developments
Open-source blockchain technology is the basis for cryptocurrency. Investors can check the most recent developer activity and get an idea of what the cryptocurrency might be useful for.
6. If you are Comfortable Losing Money, Invest your Money
Some cryptocurrencies can even fall to zero. Investors learned from the Terra LUNA token's implosion that they should not invest all their money in one stablecoin and only put what they can afford to lose.
7. Watch out for ICOs
Some years ago, initial coin offerings were quite popular. ICOs have become a primary target for naive traders. ICOs are risky, and investors should read the cryptocurrency whitepapers before investing.
8. Select the Best Crypto Exchange and Wallet Services
Investors should look for reputable crypto exchanges, wallets, and services to manage cryptocurrency funds and investments. As cryptocurrencies have grown in popularity, many new wallets and crypto exchanges exist. However, selecting the best one can be overwhelming.
9. It is Critical to Protect the Private Keys
Investors must protect and remember their private keys, even if they don't remember all their crypto wallets' passwords. A hardware wallet is one of the most secure ways to manage crypto money. It does not need an internet connection, making it more resistant to attack.
10. Stay Informed About the Latest Taxation and Regulatory Measures
Investors should do extensive research before purchasing cryptocurrencies to determine their governments' regulations to regulate digital assets. Since 2023 will see increased regulation, aspiring cryptocurrency users should be very careful regarding crypto tax laws.
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Conclusion
In India, you can buy cryptocurrencies through cryptocurrency exchanges. Trading cryptocurrencies is not allowed on any electronic commerce website. In India, cryptos such as Bitcoin and Ethereum, which are popular in retail trading (believe it or not), barely make an appearance. Most of the time, they are used to make cross-border payments outside India.
Before investing in crypto, investors need to be aware of and understand the risks before investing in crypto. It is difficult to argue that crypto investing has no value when considering all the benefits mentioned above. Investors who value safe, fast and secure transactions will find crypto's benefits very valuable.
