Why invest in cryptocurrencies? Where can you buy and then store them?
Here is a detailed description of cryptocurrency investment. Bitcoin and Ethereum are the best and the hottest currency investment available. These have promised to be the future non-manipulatable money for the entire globe. These cryptocurrencies in the future might replace and substitute for Euro and Dollar and be the hard world currency.
A Cryptocurrency is a digital form of currency created and managed with the use of encryption techniques such as cryptography. This has gained importance since 2009 with Bitcoin coming into the finance market.
Bitcoin has drawn the investors and the media around the world towards it with high plunges. It is debatable whether this trend will continue or will cryptocurrencies just fade away?
Cryptocurrency has no intrinsic value. The value of a cryptocurrency is decided by the buyer as to what he is ready to pay. Cryptocurrency faces high volatility. So do not invest all your money into this as the risk of losing money is high. Instead look for other options to invest which are better.
— CryptoCurrency News (@CryptoBoomNews) December 13, 2017
In 2009 when cryptocurrencies just entered the market it was difficult to procure them. Today, there are plenty of options to buy these cryptocurrencies. To buy these you need to have a wallet or an exchange. These have two features: a private key and a public key. These keys are an alphanumeric character that is a security feature for the wallet or the exchange.
Public key is similar to the bank account number. This is to receive deposits to your cryptocurrency. This can be shared with anyone.
Private Key is to withdraw money from the account. It is always linked to your public key but you do not use it anywhere. This has to be kept secured.
To buy Bitcoin is an easy part and here is how to go about:
Trading with an exchange is very easy. Since exchange is used to buy crypto it is better to not store it there. The ideal place is the wallet for storing these cryptocurrencies.
You can transfer all the cryptocurrencies to the wallet. Initially, send a small account and always use a multi-step authentication process to be secure. And these steps are time-consuming.
How bankers talk about Bitcoin:
2012: „What is Bitcoin?“
2013: „Bitcoin is useless“
2014: „Bitcoin is for criminals“
2015: „Bitcoin will fail“
2016: „Bitcoin has to be regulated“
2017: „Bitcoin is a bubble“
2018: „How can we do business with Bitcoin?“#CryptoAssets #Bitcoin
— Marc P. Bernegger (@marcpbernegger) December 13, 2017
Bitcoin has both advantages and disadvantages. The limitations can be easily tackled as the Bitcoins become more and more popular.
Since the cryptocurrency have been introduced in 2009 they have gained maximum attention and has been a topic for debate. Majority believe that cryptocurrency can be widely used because of the minimal regulations and no extra charges.
This can be used to send or receive money. But on the other hand, implementation of digital currency does not allow the Government to imply taxes and thus the revenue through taxes will be less. This will promote criminal activity.
For cryptocurrency to become the centre of the financial world it has to pass several hurdles. The chances of winning the race look remote.
By creating proper awareness and understanding of what cryptocurrencies are and the benefits and the risks attached to it, Bitcoins cannot be substitute or replace Euro and Dollar in the near future.
As more and more people trade with Bitcoins it will definitely be the best investment option.