Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions.It's a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database that describes specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. You store your cryptocurrency in a digital wallet.
cryptocurrency got its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety.
How Secure Is Cryptocurrency?
Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into "blocks" and time stamped. It's a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that's hard for hackers to tamper with.
In addition, transactions require a two-factor authentication process. For instance, you might be asked to enter a username and password to start a transaction. Then, you might have to enter an authentication code that's sent via text to your personal cell phone.
While securities are in place, that doesn't mean cryptocurrencies are un-hackable. In fact, several high-dollar hacks have cost cryptocurrency startups heavily. Hackers hit Coincheck to the tune of $534 million and BitGrail for $195 million in 2018. That made them two of the biggest cryptocurrency hacks of 2018, according to Investopedia.
How to Invest in Cryptocurrency?
Bitcoin was considered nothing more than an interesting phenomenon when it first came out in 2009. Technicians and futurists could see the future potential of cryptocurrency in general, but it wasn't drawing much interest as an investment. But as the years have passed and hundreds of more cryptocurrencies have come and gone, Bitcoin has emerged as the standard-bearer of the currency. Here's our comprehensive guide to how to invest in cryptocurrency
Choose Your Cryptocurrency
This is one of the real complications of cryptocurrency. There isn't just one, but hundreds. Maybe even more than a thousand.
Complicating the issue is that more are coming online all the time. That has to be counterbalanced by the reality that hundreds of cryptocurrencies have come and gone already. And the whole concept of cryptocurrency started only about a decade ago.
Bitcoin is the Most Dominant Cryptocurrency for May 2021
Right now, the largest cryptocurrency is Bitcoin. It's also the crypto that's drawing the most attention and investment dollars. In a very distant second position is Ethereum, and there are others like Zcash, Dash, and Ripple.
2.Choose a Platform to Buy Cryptocurrencies
One of the disadvantages of buying cryptocurrencies is that you can't get them in all the usual financial places. Banks don't offer them and neither do investment brokerage firms.
For the most part, you'll be limited to buying, holding, and selling cryptocurrencies on dedicated cryptocurrency exchanges.
Here are some of the largest & most popular crypto exchanges
Be Ready for a Wild Ride!
Bitcoin has had a lot of ups and downs over the years. This chart from CoinDesk shows the price performance of Bitcoin from 2013 to the present. (Click on “all” at the top of the chart.) At the beginning of the chart back in 2013, Bitcoin was trading below $130.00. But it skyrocketed to $17,060.55 on December 11, 2017, before crashing again a few months later. In 2021, it started to jump again, getting close to $50,000 on February 16, 2021.
THERE ARE MANY METHODS OF EARNING CRYPTOCURRENCY WE WILL DEEPLY DISCUSS ABOUT THAT IN NEXT BLOG
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