Everyone has heard how Bitcoin and other cryptocurrencies have made them millionaires who recently bought a year ago. Not only is a profit of 1,000% or more possible, they are commonplace with many of these cryptocurrencies. Anyone who buys Bitcoin for less than $ 500 in May 2016 will make a profit of 1,400% in about 17 months. Then over the last few days, we’ve seen Bitcoin lose about 1,000, so it would be a huge insult to call these cryptocurrencies volatile.
Since the introduction of Bitcoin in 2008, we have been skeptical of the survival of cryptocurrencies in Trend News, because they pose a very clear threat to governments that want to see all transactions and pay taxes. But while we may still be wary of real cryptocurrencies, we are very much aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will cause a significant disruption in how data is handled and that it will affect every sector of the world economy, such as the Internet media.
Here are some questions and answers to get us started …
Q: What is cryptocurrency?
The most popular cryptocurrency (CC) is BITCOIN. It was the first CC to be launched in 2008 Today there are over 800 CCs including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero and they are all “virtual”. There are no “physical” coins or coins.
Q: How does CC work?
CC is a virtual currency that exists in many large distributed databases. These databases use blockchain technology. Since every blockchain database is widely distributed, it is considered immune from hacking, as there is no focal point of attack and every transaction is visible to everyone on the network. Each CC has a team of administrators, often called “moneylenders”, who verify the transaction. A CC called Ethereum uses “smart contracts” to verify transactions. Crypto TREND will provide more details in the upcoming news release.
Q: What is a blockchain?
Blockchain is a technology that underpins all CCs. For the purchase, sale or exchange of CC, each transaction is entered into a block which is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry, as transactions can be executed quickly and easily, and fees can be reduced or eliminated. The technology is also being tested for application in many other industries.
Q: Is CC Exchange regulated by the government?
For the most part, the answer is no, which is a big attraction in this market for some users. It is now the “Wild West”, but governments in most developed countries are examining the market to see if any controls may be needed. A big decision is whether CC will be considered as a currency or a product / security. Canada and the USA have so far declared that CCs are legal, but the situation remains fluid in terms of reporting and tax implications. Crypto TREND will track and report these developments.
Q: How do I invest in this market?
You can buy, sell and exchange CC using the services of specialized “exchanges” which act as brokerages. You start by selecting an exchange, setting up an account and transferring Fiat currency to your account. You can then place your purchase and sale CC order. There are many exchanges around the world. Opening an account is fairly easy and these exchanges have their own rules regarding initial funding and withdrawals.
Crypto trend CC Exchange will be recommended in future.
Q: Where do I put my CC?
You need to have a digital wallet to get the freedom to move your crypto currencies around and pay the bills. These wallets come in a variety of formats, such as desktop, cloud-based, hardware (USB), mobile phones and paper. Many of them are free, however, security is a big factor because no one 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 cryptocurrencies for certain financial transactions, such as money transfers and billing. The list of cryptocurrency companies is growing rapidly, and includes big hitters such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.
Q: What next?
As we get started, we’ll keep each crypto trend article short and keep the scope of each one as narrow as possible. As we mentioned earlier, we believe that cryptocurrency technology will be a game changer and potential investment opportunities like this come once or twice in a lifetime. Make no mistake, the initial investment in this sector is only for your most speculative capital, the money that you can lose.
Even if you don’t want to invest at this time, gaining an initial idea of this new disruptive technology will put you in a better position to benefit from our recommendations as we move forward.
Stay tuned for more news and specific recommendations from Crypto TREND as we embark on a journey that may at first seem like an exotic jungle. It is a volatile market and may not appeal to all investors, however, the crypto trend will be your guide if you are ready.