Investing in Cryptocurrency: What You Need to Know
Cryptocurrency is a digital form of currency that is secured by cryptography and decentralised networks based on blockchain technology.[0] It is a revolutionary technology that is quickly becoming mainstream, with many companies now accepting digital money in the form of virtual coins or tokens.[1] It is important to understand the basics of cryptocurrency if you choose to invest, as the prices can be volatile.[2]
Cryptocurrency works through cryptography, which makes it difficult to counterfeit or manipulate. It is also decentralized, meaning there is no system of banks or other financial institutions that act as intermediaries.[3] Blockchain technology is commonly associated with cryptocurrency, and its applications extend far beyond digital currency. Blockchain allows users to send and receive money from anywhere globally without relying on banks, and smart contracts eliminate the need for third parties.[4]
The global cryptocurrency industry is driven by the rising demand for remittances in developing nations, operational efficiency and transparency in financial payment systems, and increased data security.[4] By utilizing blockchain distributed technology protocols, various parties can transparently move payments across the business, making eradicating environmental crimes and other transgressions easier.[5]
It is important to note that cryptocurrency scams are increasing, with about 46,000 people reporting they have lost more than $1 billion, according to the FBI.[3] People in Colorado have lost about $25 million to investment scams, and it is important to be aware of the warning signs to avoid falling victim in the first place.
Bitcoin and Ethereum are two of the most popular cryptocurrencies. Ethereum is more than just a currency, as it is used to carry out smart contracts.[2] Staking is also important as a proof-of-stake blockchain network is only as secure as the number of tokens pledged to these validators.[5]
In order to purchase cryptocurrency, you will need a crypto wallet and a crypto buying site. Prices of cryptocurrency are extremely volatile, and if you hold them as assets without making purchases, you will see a downfall in the value of cryptocurrencies.[6] It is important to be aware of this and take the necessary precautions to protect your investments.
0. “Yachts Invest partners with Bitcashier to accept Cryptocurrency …” yachtsinvest.com, 11 Feb. 2023, https://yachtsinvest.com/blog/yachts-invest-partners-with-bitcashier-to-accept-cryptocurrency-payments/
1. “Cashing In on Cryptocurrency and NFTs: Buyer Beware – Inglewood …” inglewoodtoday.com, 11 Feb. 2023, https://inglewoodtoday.com/buppie/cashing-in-on-cryptocurrency-and-nfts-buyer-beware/
2. “Exploring Cryptocurrency Technology: 8 Facts to Learn About …” www.tekedia.com, 11 Feb. 2023, https://www.tekedia.com/exploring-cryptocurrency-technology-8-facts-to-learn-about/
3. “FBI: More than $1 billion lost in cryptocurrency scams as popularity …” denvergazette.com, 11 Feb. 2023, https://denvergazette.com/news/crime/fbi-more-than-1-billion-lost-in-cryptocurrency-scams-as-popularity-increases/article_5807978c-a32b-11ed-a7f4-c313b881fb62.html
4. “Cryptocurrency Market is likely to reach $12.10 billion by” www.globenewswire.com, 11 Feb. 2023, https://www.globenewswire.com/en/news-release/2023/02/07/2603472/0/en/Cryptocurrency-Market-is-likely-to-reach-12-10-billion-by-2030-Globally-at-a-CAGR-of-11-9.html
5. “Coinbase Global Inc chief warns of potential cryptocurrency staking …” www.proactiveinvestors.co.uk, 11 Feb. 2023, https://www.proactiveinvestors.co.uk/companies/news/1005709/coinbase-global-inc-chief-warns-of-potential-cryptocurrency-staking-ban-1005709.html
6. “What is Cryptocurrency and what are its benefits? | Payments” www.telemediaonline.co.uk, 11 Feb. 2023, https://www.telemediaonline.co.uk/what-is-cryptocurrency-what-are-its-benefits/
