Explaining Cryptocurrency: A Dive into Digital Currency, Blockchain, and Investment Strategies

Digital Assets: Insider Insights on Cryptocurrency, Blockchain, and Wealth Creation

You are already familiar with a digital currency that exists only on the internet; it is decentralized and can be used to sell and buy stuff. You got it right; it is called cryptocurrency. There is no physical existence of cryptocurrency. No coin or no bill exists. A common currency like the dollar is backed and supported by banks and the government, but crypto is another story. It is backed and supported by its users. So, it is the currency of the people, by the people, and for the people. 

The more it is used and purchased, the more value it will gain. How many cryptocurrencies are there? There are thousands of cryptocurrencies in the world right now. When the word crypto is heard, the first name that comes to mind is Bitcoin. Yes, launched in 2009, the original crypto, the most successful in the world. Other big names are Etherioum, tether, bitcoin cash, and Dogecoin. Amazingly enough, it cannot be banned physically.

Working and Value of Crypto

The gold reserves of a country backed the currencies. They would print the bills equivalent to the amount of gold they had in reserves. But in the 70s, they started printing more, and governments got the right to print the money as much as they wanted. This caused inflation and other problems which are continuously resulting in the downfall of the value of money. The more money you print, the less value it will have. 

Now, people mostly invest that money in Bitcoin and other cryptocurrencies. You will be surprised to know that big names like Tesla and PayPal have been investing heavily in crypto for the last few years. In fact, Elon Musk was one of the main reasons for the sudden rise in Bitcoin’s value. People are now investing in Bitcoin, Dogecoin, and Ethereum heavily instead of real estate and gold. This is due to the trust that is developing for these currencies and their future value.

Cryptocurrency and Blockchain

For your information, each currency in the world has a record. The big question arises: where are the cryptocurrency transactions recorded? The answer is called “Blockchain”. It is a distributed digital register. It is a public ledger where any crypto holder can take part. You must know about cryptocurrency and blockchain before starting to invest in this field.

But are your transactions safe? Are they public? No, only the individuals involved in the transactions can access their records. How is it kept safe? The answer is a term called “cryptography,” the basis of the term cryptocurrency.

You keep your money in your wallet since it has a physical existence. But crypto is stored in online crypto wallets. The most common are Binance, Coinbase, Kraken, etc. You are given a long keyword when you create an account on these wallets.

You cannot lose that; otherwise, all your crypto will be inaccessible. It is unique like the password of your email or bank account PIN code. But you can recover the email or bank account passwords by proving your identity.

It is imperative, crucial, and vital to have your keyword with you when accessing your wallet. It is usually a long passphrase containing at least 16 characters. You can custom-create it, or the system can create one for you.

Crypto Mining and How Do You Do It?

You can buy cryptocurrency by using various platforms. Another way of getting crypto is called mining. You use your computer’s processing power to solve an algorithm of crypto online. It tries to balance the available currency online and gives you some of it in return. 

In layman’s terms, you are converting your electricity to cryptocurrency. The largest miner of crypto in the world is China. There are various powerhouses reserved for mining. 

However, it is not limited to China but also to other parts of the world. A computer with a GPU is at least required for mining. Cryptocurrency and Bitcoin go together, and you cannot talk about one without talking about the other.

In Bitcoin mining, new coins are added To the blockchain by using this process and the computers solving those complex computational problems are rewarded with some of them.


How Do You Earn Using Crypto?

A normal and easy approach for you to earn in this field is buying or mining it and waiting for the right moment when the cryptocurrency list price is higher and sell it. Cryptocurrency price depends upon the demand and mining cost. Bitcoin, at its launch in 2009, worked nothing.

Then, in 2010, it gained a little value, around 0.003 USD. Since then, it has kept on rising exponentially. Today, Bitcoin has a value of around 70000 USD. It is, without a doubt, the fastest-growing cryptocurrency. People who possess the ability to look ahead into the future are often surprised by the outcomes of their past investments. 

We are not talking about palm reading, gazing at stars, and voodoo stuff. We are talking about the ability to feel what is coming in the next years by using logic and getting to know the latest trends around the globe.


What Cryptocurrency To Buy?

Cryptocurrency prices shift like see wind; you have to be careful and always do your research. People who invested in Bitcoin have earned billions of dollars. The cryptocurrency bitcoin price once crossed 63 thousand dollars when it was being invested heavily. 

That was the time to invest in it, and people who did make a lot of money. But some people also lost a lot of money as well. But is it like gambling? Many folks may believe that, but I tend to differ for one reason: if you are well experienced and learned person in this field, you will always know the rise and fall of the prices of cryptocurrencies. 

But like the rise and fall of a kingdom, the cryptocurrency bitcoin price fell heavily after reaching its prime of 63k USD. Right now, it is around 43 thousand USD. Talk about cryptocurrency’s future? and what cryptocurrency to buy? Well, it seems bright right now. Maybe it is time for you to buy some Dogecoin since a genius like Elon Musk seems to be interested in it.


Watch Out For Cons

You must know that good and bad split the world into two. There were a lot of fake cryptocurrencies launched in the past. People saw the opportunity and invested in them heavily but in the end, they were conned. 

There was a woman in 2016 who told the world that she was going to launch the “Bitcoin Killer”; she called it Onecoin and was heavily welcomed around the world. She claimed it will be the fastest-growing cryptocurrency in the coming days. Billions of dollars were invested in that particular crypto. Her name was Dr. Ruja, and she disappeared after scamming the whole world. 

The only good thing that came out of this is that the investors in crypto became careful, and if you are planning to invest, first try to understand the crypto and its blockchain. If investors of “Onecoin” were careful, they would know that it had no blockchain. Try researching terms like cryptocurrency and blockchain.

Try to know about them as much as you can. Do not risk your savings without fully understanding these terms.