Everyone has heard that Bitcoin and other cryptocurrencies have become millions of those who bought them a year ago. Profits of 1,000% or more are not only possible, they have become commonplace with many of these cryptocurrencies. Someone who bought Bitcoin in May 2016 for less than $ 500 would have earned 1,400% in 17 months. Then in the last few days, we’ve seen Bitcoin lose almost $ 1,000, so it would be a big understatement to say that these cryptocurrencies are volatile.
Since the inception of Bitcoin in 2008, we have been skeptical of Trend News about the ability of cryptocurrencies to survive because they pose a very clear threat to governments that want to see and tax all transactions. But while we are still cautious about real cryptocurrencies, we are well aware of the potential of the underlying technology that drives these electronic currencies. In fact, we believe that this technology will have a major disruption in the way data is managed, and will affect all sectors of the world economy, just as the Internet has affected the media.
Here are some questions and answers to get you started …
Q: What are Crypto Currencies?
The most popular cryptocurrency (CC) is BITCOIN. It was the first CC, started in 2008. There are currently over 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, all of which are “virtual”. There are no “physical” coins or coins.
Q: How does CC work?
CCs are virtual currencies that are in large distributed databases. These databases use BLOCKCHAIN technology. Since every blockchain database is so widespread, it is believed to be immune to hacking because there is no central point of attack and every transaction is seen by everyone on the net. Each CC has a team of administrators, often called “miners,” who validate transactions. A CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more details in upcoming news releases.
Q: What is BLOCKCHAIN?
Blockchain is the technology behind all CCs. Each transaction to buy, sell, or exchange CCs is included in a BLOCK that is added to the string. This technology is complex and will not be described here, but it has the potential to revolutionize the financial services industry because transactions can be done quickly and easily by reducing or eliminating fees. Technology is also being explored for applications in many other industries.
Q: Are CC exchanges regulated by the government?
For the most part, the answer is NO, which is a great attraction for some users in this market. It is now a “wild West”, but governments in most developed countries are looking at that market to decide what regulation is needed. A big decision is to treat CCs as currency or for sale / security. Canada and the US have so far stated that CCs are legal, but the report and tax implications remain mild. Crypto TREND will monitor and report on these developments.
Q: How do I invest in this market?
You can buy, sell and exchange CCs using the services of specialized “exchanges” that act as intermediaries. You start by selecting an exchange, setting up an account, and transferring fiat currency to your account. You can then place your BUY and SELL CC orders. There are many exchanges around the world. Opening an account is fairly easy and all of these exchanges have their own rules about initial funding and withdrawal.
Crypto JOERA CC will recommend exchanges in the future.
Q: Where do I store my CC?
To have the freedom to move your cryptocurrencies and pay your bills, you must have a digital wallet. These wallets come in a variety of formats, such as desktop, cloud-based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor as no one wants to lose or steal their wallet. 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 cryptocurrency to pay for certain financial transactions, such as cash transfers and bills. The list of companies that support cryptocurrency is growing rapidly, and includes major players like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.
Q: What’s next?
To get started, we will keep each Crypto TREND article short and keep the scope of each one as narrow as possible. As we stated earlier, we believe that cryptocurrency technology will be a game changer and that such potential investment opportunities will come once or twice in a lifetime. Make no mistake, investing in this sector early will only be for your most speculative capital, money you have a chance to lose.
Even if you don’t want to invest right now, knowing this new disruptive technology early will put you in a good position to take advantage of our recommendations as we move forward.
We look forward to seeing more news and more specific recommendations on Crypto TREND as we begin this journey into what initially seems like a foreign jungle. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.