This guide introduces seven things about cryptocurrency and what we should pay attention to when we contact cryptocurrency. Cryptocurrency (or “crypto”) is a kind of digital currency that can be used to purchase goods and services, but online transactions are protected by online account books with powerful Cryptocurrency function. People’s interest in these unregulated currencies is mainly trading for profit, and speculators sometimes push prices up. The price of bitcoin, the most popular cryptocurrency, has fluctuated a lot since this year, reaching nearly $65000 in April, and nearly halving in May (you can check the current price here to buy bitcoin.)
1. What is cryptocurrency?
Cryptocurrency is a payment method that can exchange goods and services online. Many companies issue their own currencies, often called tokens, which can be used exclusively to trade goods or services provided by the company. Think of them as arcade tokens or casino chips. You need to convert real currency into cryptocurrency to access goods or services.
Cryptocurrency uses a technology called blockchain. Blockchain is a decentralized technology distributed on many computers that manage and record transactions. One of the attractions of this technology is its security.
2. How many cryptocurrencies are there? How much are they worth?
According to market research website coinmarketcap.com, more than 10000 different cryptocurrencies are publicly traded. Cryptocurrencies continue to proliferate, raising money through the initial coin issue (ICO). On May 27, 2021, the total value of all cryptocurrencies exceeded $1.7 trillion, down from the April high of $2.2 trillion, according to coinmarketcap. Bitcoin, the most popular digital currency, has a total value of about $735 billion, down from its peak of $1.2 trillion in April.
3. Why is cryptocurrency so popular?
Cryptocurrency attracts its supporters for many reasons. Here are some of the most popular:
Supporters see cryptocurrencies such as bitcoin as future currencies, and are competing to buy them now, presumably before they become more valuable
Some supporters like cryptocurrency to make it impossible for central banks to manage the money supply, because over time, these banks tend to reduce the value of money through inflation
Other supporters like the technology behind cryptocurrency, blockchain, because it’s a decentralized processing and recording system that can be more secure than traditional payment systems
Some speculators like cryptocurrencies because their value is rising and they are not interested in the long-term acceptance of money as a way of money flow.
4. Is cryptocurrency a good investment?
Cryptocurrency may appreciate, but many investors see it as pure speculation rather than real investment. What is the reason? Like real money, cryptocurrency doesn’t generate cash flow, so if you want to make a profit, someone has to pay more for it than you.
This is the so-called “big fool” investment theory. In contrast, well managed enterprises increase value by increasing profitability and cash flow.
“For those who see cryptocurrencies such as bitcoin as future currencies, it should be noted that a currency needs to be stable.”
Some well-known voices in the investment community advise future investors to avoid them. It’s worth mentioning that legendary investor Warren Buffett compares bitcoin to a paper check: “bitcoin is a very effective way to transfer money, you can do it anonymously. A check is also a way to pass money. Is the check worth a lot of money? Because they can deliver money? ”
For those who regard cryptocurrencies such as bitcoin as future currencies, it should be noted that a currency needs to be stable so that businesses and consumers can determine the fair price of goods. Bitcoin and other cryptocurrencies have been unstable for most of their history. For example, although bitcoin traded close to $20000 in December 2017, its value fell to about $3200 a year later. By December 2020, its trading volume will reach a record level again.
This price fluctuation creates a problem. If the value of bitcoin is likely to be higher in the future, the possibility of people consuming and circulating bitcoin today will be reduced, which will reduce the feasibility of bitcoin as a currency. Next year bitcoin may be worth three times as much as it is now. Why spend money?
5. How to buy cryptocurrency?
Although some cryptocurrencies (including bitcoin) can be purchased in US dollars, some require you to pay in bitcoin or other cryptocurrencies.
To buy cryptocurrency, you need a “wallet,” an online application that can hold your currency. Generally speaking, you set up an account on an exchange, and then you can transfer the real money to buy cryptocurrency, such as bitcoin or Ethereum. Here’s more about how to invest in bitcoin.
Coinbase is a popular cryptocurrency exchange where you can create a wallet to buy and sell bitcoin and other cryptocurrencies. In addition, more and more online brokers offer cryptocurrency, such as eToro, TradeStation and Sofi active investment. Robin hood offers free cryptocurrency transactions (Robin Hood crypto is available in most states, but not all States).
6. Can I get free cryptocurrency?
When we contact cryptocurrency, we must consider how to protect ourselves from the influence of swindlers. They think that occult disease is an opportunity to cheat investors. As always, buyers should be careful. Is there a free cryptocurrency available? Although there is no free lunch in the world, free cryptocurrency still exists. Now I will introduce several profitable faucet websites to you. I hope you can get your favorite cryptocurrency for free.
At present, xfaucets has ten kinds of cryptocurrencies, including BTC, Eth and Doge. If you are interested in other cryptocurrencies, you can also collect them synchronously, because it can be obtained every ten minutes. In addition, xfaucets has two levels of invitation rewards. The first level receives 25% of the rewards from the users who register and click on your invitation link, and the second level receives 10% of the rewards from the friends you invite and then invite them. This is different from other platforms and more profitable. If you are interested, you can click my invitation link to view it.
Coinbaze started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, Coinbaze offers a trusted and easy-to-use platform for accessing the broader crypto-economy.
Faucet.asia is a special faucet station that provides dogecoin. If you are only interested in dogecoin, you might as well try this website, faucet.asia. You can get 0.001 Doge in 30 minutes. Of course, faucet.asia also has a recommendation reward. You can get 25% of the recommendation reward by inviting your friends to register through your invitation link. If you want to get a lot of free dogecoin from the faucet and add some fun, faucet. Asia is definitely worth a try.
konstantinova.net is a cryptocurrency faucet which rewards the users for playing games. The payout are made via Cryptocurrency Wallet and the withdrawals are said to be processed within a day.
Claim: claim your favorite Coin every 5 minutes
Min. Payout: depends
Ref. Commission: 50%
Supported Cryptocurrencies: BTC, BCH, DASH, DGB, Doge, ETH, LTC
7. How can I protect myself?
If you want to buy cryptocurrency in ICO, please read the details in the company’s prospectus: who owns the company? An identifiable and well-known owner is a positive sign. Are there any other major investors investing? If other well-known investors want a piece of the pie, that bodes well.
Will you hold shares in the company or just currency or token? The difference is important. Owning shares means you can participate in the proceeds (you are the owner), while buying tokens just means you have the right to use them, just like chips in a casino.
Has the currency been developed, or is the company planning to raise funds to develop it? The farther the product is developed, the less the risk.
It may take a lot of work to sort out a prospectus; The more details, the more likely it is to be legal. But even legitimacy doesn’t mean the yuan will succeed. This is a completely different issue, which requires a lot of market mind.
But beyond that, owning cryptocurrency alone puts you at risk of theft, as hackers try to hack into the computer networks that maintain your assets. In 2014, a well-known exchange went bankrupt after hackers stole hundreds of millions of dollars of bitcoin. These are not typical risks of investing in stocks and funds on major US exchanges.
Should you buy cryptocurrency?
Cryptocurrency is an incredibly speculative and volatile purchase. Compared with investing in cryptocurrencies such as bitcoin, the stock trading risk of established companies is usually smaller.