It was 2009 when crypto hit the market, and a lot has shifted towards the good where it is involved. However, to this date, there are still some significant shifts geared towards the betterment of the industry. And several people are looking to join.
There Are several things to learn when it comes to cryptocurrency before you deep your toes into those waters. Since there’s too much information out there that can leave you confused, we have piled up everything here, from how trading started to how you can be a part of it.
What is Cryptocurrency?
The first question that you should look for an answer to before going any further is what cryptocurrency is. This is a form of payment that is made in exchange for digital goods. It can also be a payment made for an online service.
Many companies issue their currencies which are known as tokens. It works basically as how the chips in the casino operator. This means you need to exchange real currency for you to get any cryptocurrency.
These currencies are traded using blockchain, which is at the core setup of cryptocurrency giant bitcoin. The reason for blockchain is that it offers a secure way of exchange.
Why Are Cryptocurrencies Popular?
There are several reasons why anyone can find cryptocurrencies popular. Below are some of the best reasons:
- They are seen as the future of currency by most people. That’s why there’s a lot of clamor for them before their prices get to heights that not many people can afford.
- Blockchain is decentralized, making it appealing to most digital space users. And the data passed is secure than the traditional methods
- They are hitting high values have zero interest
- Cryptocurrencies remove the idea of a central bank managing the money supply. This means there’ll never come a time when the currency value decreases due to inflation as other normal currencies.
How To Buy Cryptocurrencies
Most of the crypto markets today need you to buy with dollars or bitcoin in some scenarios. And they are pretty available to buy so long as you have a wallet – an online app to hold the currency.
Once you create the account done on the exchange, you can then transfer money to Bitcoin or Ethereum. Bitcoin was founded in 2009, making it one of the most valuable. On the other hand, Ethereum was founded in 2015 and is also quite valuable. The money you transfer to the account is real money. Of the other exchanges, Coinbase is the most popular, and you can use it.
With Coinbase, you can both sell and buy cryptocurrencies. In addition, there are exchanges such as eToro and Sofi Active Investing. Then there’s Robinhood that offers free trades on cryptocurrencies.
Note- Robinhood can’t be accessed in all US states.
How Many Cryptocurrencies are Available?
The thing about crypto is that there are quite a large number of them in the market today. Think 10,000 or even more different types of cryptocurrencies available. The total value of all the available cryptocurrencies in the world today is around $1.7 trillion.
This is down from the initial $2.2 trillion, according to CoinMarketCap. This is a market research website that is dedicated to everything crypto. From the $1.7 trillion, bitcoin is pegged at $735 billion.
- These numbers are this year’s numbers, with the revelation being made on 27th May 2021.
Are They Legal?
Depending on which part of the world you’re in, crypto can be legal or illegal. For example, in the US, cryptocurrencies are legal. In China, however, cryptos are illegal -they are banned.
However, many fraudsters in the industry need to be careful before making any move.
There are certain things you need to look at before putting your money into the business:
- Who owns the company – a well-known owner, the better.
- If some big-time investors are investing, that’s a good sign
- What is buying – a stake in the company or just the currency? If there are no clear distinctions, that’s a bad sign.
- Is the company looking to raise money, or is the currency already developed? Of course, the more developed the currency is, the better -fewer risks.
It would help if you answered several questions alone and the best way you can before you can get into cryptocurrency. That’s the only way you’ll be sure your investment is safe. So here are a few answers about trading and how you can start.