Cryptocurrency is a digital currency that stores its value in encryption and employs cryptography as a security measure. Cryptocurrencies have grown in value over the past decade with Bitcoin increasing from $0.07 per coin ten years ago to $8,000. As interest has grown so too has the number of cryptocurrencies available on exchanges – there are currently over 1,500 different ones out there. Crypto is a digital currency that stores its value in encryption and employs cryptography as a security measure. It’s been around for almost 20 years now, but recently, more and more people are buying into it as an alternative store of wealth. In this article, we’ll examine some of the most common reasons why people decide to buy crypto.
Cryptocurrency- who, what, when, and where?
Cryptocurrency is a digital currency that stores its value in encryption and employs cryptography as a security measure. Some of the most prominent cryptocurrencies include; Bitcoin (BTC), Ethereum (ETH), NEO (NEO), Ripple (XRP), and Litecoin (LTC) which together make up over 50% of the market. The big players such as Ethereum and Ripple have seen their prices increase by thousands of percent, and even smaller players are safe to bet on as there is a solid future price prediction for Moonbeam. Following other currencies on the market, as well as the current scales you should be able to make safe predictions about the value spikes in the future. Set the time to observe the economic fluctuations before investing and play it safe.
At the end of 2017, a huge spike in interest saw a sharp increase in the price of Bitcoin and other cryptocurrencies as people rushed to invest. This was due to several reasons including; South Korea announcing that they were going to support crypto trading, rumors about Goldman Sachs launching trading platforms for cryptocurrency, and Facebook’s announcement that it would be launching a cryptocurrency payment system.
Why buy crypto?
One of the biggest reasons why people decide to buy cryptocurrencies is due to their ever-growing value which makes them ideal stores of wealth. Investing in Bitcoin or Ethereum has proven to be profitable for investors as they have increased their value by thousands of percent over the past year alone. If you decide to invest in them today, there is no telling how much you’ll earn tomorrow; if things continue at the current rate, the price will continue to grow exponentially which presents a great investment opportunity.
You should also consider cryptocurrency as a viable alternative to traditional payment methods such as PayPal, credit cards, and cash. When you buy crypto with fiat cash or another digital currency, it can be instantly transferred to people in different countries around the world which is free of charge and without any middleman intervention. There are lower fees when trading cryptocurrencies than there are when you purchase with traditional methods, and it can be done in person or online.
Where to buy crypto?
Cryptocurrency exchanges offer an easy way for investors to buy cryptocurrencies without having to sign up for a wallet service which is the most common method of buying currencies like Bitcoin and Ethereum. The most reputable exchanges include Coinbase which has a mobile app, allowing easy access to Bitcoin and Ethereum trading for new investors to the market.
Several other exchanges offer Bitcoin and Ethereum trading through their apps, including Bitstamp, Bittrex, Poloniex, Kraken, among others which you can’t go wrong with as they’re all relatively popular and serve a similar function.
Cryptocurrency has existed in some form since the 1990s but was only introduced to the mainstream in 2009 after the release of Bitcoin by Satoshi Nakamoto. A lot of people consider it to be the future of currency, especially after Brexit and Trump’s election victory, which sparked fears worldwide over traditional currencies becoming more volatile than usual.
Bitcoin was released as a peer-to-peer electronic cash system that allowed online payments to be sent directly from one party to another without going through a financial institution. It is completely open-source and works using cryptography – hence the term cryptocurrency – transferring money between users without any middleman involved in the transaction.
Types of crypto
There are hundreds of different cryptocurrencies available today, but a lot of them have significantly less value than Bitcoin and Ethereum. There are several reasons for this, including the fact that they’re new or haven’t reached mainstream awareness yet; when Bitcoin was released it had no value at all, yet now you need to pay over $1,100 for one coin.
How to buy cryptocurrency
The process for buying cryptocurrency is relatively simple, but you’ll need a wallet service to store it in when you buy crypto with fiat cash. Most exchanges allow you to purchase Bitcoin or Ethereum on their websites, while others also offer the option of exchanging other forms of money directly for crypto which means that there’s no need to open an account with them. Generally speaking, the process involves you using a traditional payment method – PayPal, credit card, etc. – on your exchange of choice which provides you with some number of coins for this payment. Several different exchanges allow you to purchase digital currencies without having to fork out fiat money first, but they often have a limit on how much you can purchase.
You’ll also need to open an account at a wallet service like Blockchain or Coinbase, which is necessary if you want to buy Bitcoin or Ethereum and store it securely to protect yourself from hackers. There are several other cryptocurrency wallets available for storing digital currencies, including BitGo, Jaxx, and Cryptonator, which all provide different features that you may want to use.
How are Bitcoins mined?
As mentioned, there are several different types of currency available today, but Bitcoin is by far the most well-known and popular form of cryptocurrency amongst investors because it isn’t owned or distributed by a central authority unlike fiat money, which is controlled by the government.
There are several different ways that Bitcoins can be “mined” today, including through mining hardware which has been developed specifically for this purpose to increase efficiency. Mining is just verifying transactions on the blockchain, which is what makes it so secure and ultimately why so many people turn to Bitcoin as a haven currency when they’re worried about their government or central bank.
Why you should invest in crypto now
If you’re looking to make a lot of money from cryptocurrency, then now is the time to invest as the digital currency market faces a massive boom. There are several reasons why people like investing in cryptocurrencies, including:
- It isn’t controlled by a central authority
- It’s not subject to inflation
- It’s completely secure and private
These factors also mean that it is much more difficult for hackers to access your financial information or gain control of your wallet if you use HTTPS encryption. The market changes all the time, so there’s no way to say how much money you’ll be able to make from Bitcoin and other forms of cryptocurrency in the future. However, investing now means that if and when they gain more widespread popularity in the future you will have made a healthy profit on your investment.