Everyone has heard how Bitcoin and other cryptocurrencies have turned those who bought just a year ago into millionaires. Gains of 1,000% or more are not only possible, they have been a commonplace with many of these cryptocurrencies. Someone who bought Bitcoin in May 2016 for less than $ 500 would have had a 1,400% gain in about 17 months. Then, over the last few days, we saw that Bitcoin was losing almost $ 1,000, so to say that these cryptocurrencies are volatile would be a massive understatement.
Since the creation of Bitcoin in 2008, at Trend News we have been skeptical about the ability of cryptocurrencies to survive, as they pose a very clear threat to governments that want to see and record all transactions. But while we can still be cautious about real cryptocurrencies, we are well aware of the potential of the underlying technology that fuels these electronic currencies. In fact, we believe that this technology will be a major disruptive factor in the way data is managed and will affect all sectors of the global economy, just as the Internet affected the media.
Here are some questions and answers to get us started …
Q: What are Crypto Coins?
The best known cryptocurrency (CC) is BITCOIN. It was the first CC that started 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 do CCs work?
CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is widely distributed, it is believed to be immune to piracy, as there is no central point of attack and all transactions are visible to everyone on the network. Each CC has a group of administrators, often called “miners,” who validate transactions. A CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more details in future news posts.
Q: What is BLOCKCHAIN?
Blockchain is the technology that underpins all CCs. Each transaction for the purchase, sale, or exchange of CC is entered into a BLOCK that 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 by reducing or eliminating commissions. The technology is also being examined for applications in many other industries.
Q: Are CC exchanges regulated by the government?
For the most part, the answer is NO, which, for some users, is a big draw in this market. It is now the “wild west,” but governments in most developed countries are examining this market to decide what regulation may be needed. A big decision is whether to treat CCs as a currency or as a commodity / security. So far, Canada and the United States have stated that CCs are legal, but the situation remains fluid in terms of reporting and its tax implications. Crypto TREND will follow and report on these developments.
Q: How do I invest in this market?
You can buy, sell and trade CC through the specialized exchange services that act as an intermediary. Start by selecting an Exchange, setting up an account, and transferring trust currency to your account. You can then place your CC BUY and SELL orders. There are many exchanges around the world. Opening an account is fairly straightforward and all of these exchanges have their own rules about initial funding and withdrawals.
Crypto TREND in the future will recommend CC Exchange.
Q: Where do I keep my CC?
To have the freedom to move your cryptocurrencies and pay bills, you will need to have a digital wallet. These wallets come in a variety of formats, including desktop, cloud-based, hardware (USB), mobile phone, and paper. Many of them are FREE, TS, but security is an important factor as no one wants to lose their wallet or steal it. 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, such as money transfers and bill payments. The list of companies that accept cryptocurrencies is growing rapidly and includes big players like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What’s next?
As we begin, we will shorten each of the Crypto TREND items and keep each one as close as possible. As we noted earlier, we believe that cryptocurrency technology will change the game and possible investment opportunities like this happen once or twice in a lifetime. Make no mistake, early investment in this sector will be only for your most speculative capital, money you can lose.
Even if you don’t want to invest right now, gaining an early understanding of this new disruptive technology will put you in an advantageous position to take advantage of our recommendations as we move forward.
Expect to see more Crypto TREND-specific news and recommendations as we embark on this journey into what may seem like a foreign jungle at first. This is a volatile market and may not appeal to all investors, but Crypto TREND will be your guide if and when you are ready.