Is cryptocurrency the new gold rush, or just an investing bust?
If you are new to the crypto world,
do your research before adding cryptos to your portfolio.
Billionaire investor Paul Tudor Jones named bitcoin as his top bet for a hedge against post-pandemic inflation.
Most investors don’t know much about crypto currencies other than what they see in the news and can really sound suspisious when one is told about crypto currencies for the first time. Bitcoin was the first digital cryptocurrency invented in 2009 by an anonymous founder using the a group name Satoshi Nakamoto Cryptos are decentralised meaning are not managed by a bank or public agency. Instead, transactions of cryptocurrency tokens are recorded on a public blockchain – comprised of digital information stored on a database. Their future remains uncertain. “66682 Tokens or coins used in a decentralized network are not the same as shares in a company,” says Michael Anderson, co-founder of Framework Ventures. “As such, growing and proliferating these networks requires new models for success, and we’re still in the first inning of proving them out.”
Things To Know Before You Make Your Investments To CryptoCurrencies
Investing in cryptocurrencies is very speculative. “Like the majority of startup companies, most crypto assets will fail and therefore become worthless,” Anderson says. “Non-professional investors should only invest an amount they’re willing to lose.” Despite stories of investors making millions, investing at an inopportune time can result in rapid and extreme losses. As late as May 2017, one unit of bitcoin (BTC) traded for roughly $1,500. At its peak in December 2017, bitcoin got as high as $19,800. BTC ranged in price from $6,600 on April 15/ 2020 to $10,000 on May 7/ 2020 and today is trading above $30,000 having hit several all time high prices in less than a month. Although the chance of striking it rich by investing in cryptos is enticing, this market is extremely volatile and there’s a real possibility of multiplying it all or loosing it all (gaininng or loosing) and there fore when you going into it, you should be ready for what will be possible.
- Cryptocurrencies are volatile. The value of CryptoCurrencies goes through extreme ups and downs. There are lots of unknowns.
- Cryptocurrencies can be used for fraudulent activity.
- Cryptocurrencies have an unproven rate of return.
- Reliable crypto exchanges to use
- Halving of CryptoCurrencies.
Here are some of the reliable Crypto exchanges you can use to access crypto CryptoCurrencies.
This is the best overall based in USA. It was founded in june 2012 by an American born Brian Armstrong. It has over thirteen million users operating across 40 Countries. It is headquatered in San Francisco and is a brokerage of varous coins such as Bitcoin, Ethereum, Litecoin, Ripple, and many other Tokens
This is an exchange that operates across Africa, Asian and European Countries, It was founded from South Africa in 2013 by Marcus SwanPoel and other men Carel Van Wyk, Francois Paul and Timothy Starnex. It is headquatered in London and is a brokerage exchange for majorly Bitcoin, Ethereum, Litecoin, BitcoinCash, Ripple (xrp), USDC and has included a bitcoin savings wallet targeted to earn you 4% interest on every bitcoin you invest there and it the percentage varies depending on the Bitcoin’s daily price. It is a very legit platform and I my self have made several transactions succefully through my bank beneficiaries. Creat your luno wallet to start buying, selling, sending, recieving, storing any crypto and investing in bitcoin saving wallet!
This is the second lagest CryptoCurrency exchange after CoinBase overtaking it. It is headquatered in Malta and trades in various CryptoCurrencies. It was founded by Changpeng Zhao and Yi He and operated by BAM Trading Company based in San Fransco. Get it all..
This is one of the most trusted and leading European CryptoCurrency Trading and Exchange Platforms. They claim there to be nothing complicated with it meaning that with a personal email and a phone number only you can easily Creat your wallet to start making trades at a leverage of up to 200x. It also provides trading tools and customised buy/sell signals and the lowest fees among its compititors. Stormgain being a member of the Blockchain Association with in the financial commision and a partner of Newcastle United a football club in United Kingdom, this really proves it to be legit enough for you start working with it. From your created wallet, you can cloud mine to earn. bitcoins, earn 12% interest on all CryptoCurrencies held in your wallets and get 15% refferal commision whenever any body signs up using your refferal code and makes a deposite.
Nexo claims to be the worlds’ largest lending institution in financial digital industry with over $4billion assets, over 1 million users, 40 fiat currencies availble and operating in over 200 jurisdictions. With Nexo you can get several interests and loans depending on your chosen deposites. It is highly rated from most sites including trustpilot. An email and a phone number only are needed to Creat your Nexo wallet to start enjoying its services.
This a highly rated cryptocurrency company founded by Sean Andrew Wander and is headquatered in Barnet UK. It provides varous products like PaxGold, Bitcoin, Top10 bundle, Smart contract bundle, Payment bundle and other sectors which you can buy, sell and hold with them to give you monthly interests depending on the daily trends of the products you hold and time. Open the account with revix to start trading effortlessly.
Hashshiny claims to be the world’s leading clouding mining company. You can buy hashrate from the site which kicks off your mining rigs and every 24 hours you will be rewarderd accordlingly. I have made withdrawals Severals times only that its charges my not favour some one who purchases less hashrate. The site deals in mining of Bitcoin, Ethereum, ZCash, Dash and Litecoin and Decred You can also buy bitcoin from there using your card. Open account to start mining.
This is another factor that a Bitcoin or any other CryptoCurrency investor should be aware of. It is one of the key charateristics of bitcoin that there is a cap on the number of bitcoins that will ever be in circulation. Once the network reaches the limit, no more coins will be released.
The upper limit of bitcoin is 21million and if this number of Bitcoin was released in the wrong way, it would create a host of problems. Bitcoins are created when the blockchain rewards a miner for validating transactions. The network gives Bitcoin to miners for adding blocks to its chain.
To ensure that this process is sustainable, Bitcoin creator Satoshi Nakamoto included a rule in the Bitcoin protocol that the rewards miners earn would decrease by 50%!e(MISSING)very 210,000 blocks, or approximately every 4 years. This is an event known as the ‘Bitcoin halving’, or the ‘Halvening
Since Bitcoin’s inception in 2009, there have been two halving events. The initial reward for miners was 50 Bitcoin for each block mined. It was then halved to 25 Bitcoin in 2012, 12.5 Bitcoin in 2016 (the current reward), and the next halving is set to take place in May 2020, when the reward will be reduced to 6.25 Bitcoin.
Why do they happened?
The halving is done to control the supply. If the coins are created too quickly in relation to demand basic economic theory dictates that there will be a surplus in circulation and their value would fall.
Satoshi Nakamoto even explained the thought process
The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase.”
Coins have to get initially distributed somehow, and a constant rate seems like the best formula.”
To determine the rate at which they would be released, Satoshi used a logarithmic scale. This is why after 10 years, more than 80%!o(MISSING)f Bitcoin supply has been mined. However, it will be 2140 before the final Bitcoin is released