Everyone has heard Bitcoin and other cryptocurrencies make millionaires from those who bought a year ago. Not only are gains of 1,000% or more possible, they were common with many of these cryptocurrencies. Someone who bought Bitcoin for less than $ 500 in May 2016 would have made a profit of 1,400% in about 17 months. Then, in the past few days, we've seen Bitcoin lose nearly $ 1,000. To say that these cryptocurrencies are volatile would be a massive understatement.
Since launching Bitcoin in 2008, Trend News has been skeptical about the viability of cryptocurrencies as they pose a clear threat to governments who want to see and tax all transactions. While we are still cautious about the actual cryptocurrencies, we are very aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will significantly disrupt the management of data and affect every sector of the global economy, much like the Internet affects the media.
Here are some questions and answers to help us get started …
Q: What are cryptocurrencies?
The best known cryptocurrency (CC) is BITCOIN. It was the first CC to be launched in 2008. Today there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple and Monero. All are "virtual". There are no "physical" coins or currencies.
Q: How does CC work?
CCs are virtual currencies that exist in very large, distributed databases. These databases use BLOCKCHAIN technology. Since every blockchain database is widespread, it is believed to be immune to hacking because there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often referred to as "miners", who validate transactions. A CC called Ethereum uses "smart contracts" to validate transactions. Crypto TREND will provide further details in the upcoming news releases.
Q: What is BLOCKCHAIN?
Blockchain is the technology that underlies all CCs. Each transaction for buying, selling or exchanging CCs is entered in a block that is added to the chain. This technology is complex and is not explained here. However, it can revolutionize the financial services industry by making transactions quick and easy, reducing or eliminating fees. The technology is also being tested 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 major attraction of this market for some users. It's the "wild west" right now, but governments in most developed countries are examining this market to decide what regulation might be needed. A big decision is whether CCs should be treated as currency or commodity. Canada and the United States have previously stated that CCs are legal, but the situation regarding reporting and tax implications remains fluid. Crypto TREND will follow and report on these developments.
Q: How do I invest in this market?
You can buy, sell, and trade CCs using the services of specialized "exchanges" that act as brokers. You first select a stock exchange, set up an account and transfer the 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 these exchanges all have their own rules regarding initial deposit and withdrawal.
Crypto TREND will recommend CC Exchanges in the future.
Q: Where do I keep my CC?
To have the freedom to move your cryptocurrencies and pay bills, you need a digital wallet. These wallets are available in various formats, e.g. B. as desktop, cloud, hardware (USB), mobile phone and paper wallets. Many of them are FREE, but security is an important factor because nobody ever wants to lose or steal their wallets. 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 for some financial transactions, e.g. B. for money transfers and paying bills. The list of companies that accept cryptocurrencies is growing rapidly and includes big names like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What's next?
To begin with, we will keep every Crypto TREND article short and keep the scope of each article as narrow as possible. As we noted earlier, we believe cryptocurrency technology will be a critical factor, and potential investment opportunities like this arise once or twice in a lifetime. Make no mistake, early investment in this sector is only for your most speculative capital, money that you can afford to lose.
Even if you don't want to invest at this point, you can benefit from our recommendations by early understanding of this new disruptive technology.
Expect further news and specific recommendations from Crypto TREND as we embark on this journey into an apparently strange jungle. This is a volatile market that may not appeal to all investors. However, Crypto TREND is your guide when you're ready.