The first appearance of cryptocurrencies and the birth of bitcoin as such was recorded in 2009. People then first came across the term cryptocurrency, a term they had not been familiar with until then. What is a cryptocurrency? A cryptocurrency is a form of digital ownership based on cryptography – codes, which as ordinary paper money can be used as a means of payment, exchange, savings can even be used as an investment. Every type of transaction you make with cryptocurrency is protected and secure because it is code-based.
Bitcoin is the mother of all cryptocurrencies. With its first public release in 2009, its creator known only under the pseudonym Satoshi Nakamoto, whose identity has not been revealed to this day, will make such a boom years later thanks to the bitcoin software. Thanks to him, many human lives will be changed and cryptocurrencies will get their deserved place in the financial world.
There are currently thousands of types of cryptocurrencies in the world, of which bitcoin is the oldest and most valuable at the moment. Behind it, but no less important, are etherium, ripple, litecoin, and many others. Although bitcoin is currently the most valuable cryptocurrency, this has not been the case in the past. At first, when it appeared it had no value, a year later in 2010 that changed after two pizzas were bought for 10,000 bitcoins. Over the years its value has changed dramatically, growing and shrinking dramatically, today one bitcoin is worth an incredible $ 64,000.
You are probably wondering what is the reason for the huge difference in the variation of its value. Unlike paper money as a medium of exchange and payment, which with the help of national banks that use control tools to maintain the exchange rate, in the world of cryptocurrencies there is no such system. Its value can be influenced by many factors such as people’s interest, the higher the interest the higher its value. This can be seen in the example of Elon Musk, the owner of Tesla, who, through a single tweet on Twitter, can influence the rise in the price of bitcoin. Musk is one of the many owners of companies that have accepted bitcoin as a legitimate means of payment, today you can, for example, buy a Tesla car for 1 bitcoin. His example is followed by several other companies such as Microsoft, Apple, MasterCard, and many others. The high price can be affected by the limited number of bitcoins, many bitcoins are lost due to a forgotten password and it is not known if they will ever be returned to circulation.
A very important question is how bitcoin is made. It is created by the so-called mining process, all you need from the mining equipment is electricity and a powerful computer that will dig for you. But can you make money just by digging into cryptocurrencies? Is it possible to see bitcoin as a possible career that will bring us profit in the future, or will it be just a hobby? If you decide that mining, buying, and selling cryptocurrencies trading on the crypto market is the ideal thing for you, then you will have to invest a lot of money and time in it. For more information go to starofmysore.com you can find some useful information on how to make a living out of bitcoin trading.
What is the essence of trading bitcoins or any other cryptocurrency? The goal is the same as trading any other trade, bitcoins are bought when the value is lower, and they are sold of course when its price becomes higher. Just as in real life where we use paper money as a means of buying and selling, we set it aside as savings for the future, so in the world of cryptocurrencies, the same actions can be done. With bitcoin, we also use the so-called “wallet” that is installed on your phone, computer, or any other device with which transactions are performed. If you forget the password of the application on your online n on this topic. Investing in cryptocurrencies is a high-risk job because its price changes daily up and down and there is no possibility and mechanism for cryptocurrency holders to be compensated. Crypto users are often the victims of hacker attacks and there is a possibility that their assets may be stolen, so they should try to invest money in high-quality computer equipment and software to avoid this scenario. The cryptosystem is not regulated in any way, and users often encounter various types of scams and cyber attacks daily. If you invest with credited funds you can get into debt. Never borrow money to invest in bitcoin, try to do it through the savings you have, if you have one. Bitcoin is an online technology-dependent exchange, and there is no way you can protect your assets like you can protect paper money, gold, stocks, etc.
Cryptocurrency education is crucial so that you do not get into a situation of being the victim of a fraud, consult first a person you know, such as a relative, friend, colleague, who has entered the world of cryptocurrencies and can help you more easily understand how it works.
Although the crisis is an ideal time to invest, care must be taken in what to invest. Investments in savings deposits in foreign currencies and small profitable businesses are pointed out as ideal directions in which the investment can be directed. Cryptocurrencies, or bitcoins, in particular, are pointed out as the best option. Bitcoin can be an even better investment option if you take care to do it the right way and at the right time. The right way is only if bitcoin is seen as an investment and as a source of additional income and not as a job and basic source of existence.