Cryptocurrencies have proved to be a viable investment option over the past few years. But in order to start investing, one first needs to understand the basics that go behind making a cryptocurrency what it is.
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What is a cryptocurrency?
It is a digital currency which works on the technology called blockchain. All the transactions are recorded on a public ledger which is encrypted and verifiable. Such currencies are not backed by any physical valuables and that is what makes their trading so volatile, risky and profitable.
Why do some people feel reluctant in dealing with cryptocurrencies?
Cryptocurrencies, since their birth, have faced two issues in general which originate from a general lack of trust. As there is no central authority to regulate such assets, there have been apprehensions around them as being bubbles ready to pop any time. Such fears due to lack of regulation are not unfounded, as many people have been defrauded in the crypto market. But such experiences occur only when one doesn’t confirm the legitimacy of the exchanges and such other services they avail. Popular ones these days are both safe and reliable.
How do Cryptocurrencies work?
Blockchain: It is the technology that backs the entire crypto world. It is a digital ledger that records all the transactions being made. Such transactions recorded are distributed with all the participants. The data is saved and organized in such a manner that it is safe from any sort of attacks intended to cheat the system.
Decentralized database: The database and the decision making powers are distributed over the network among all the participants. This makes the data both verifiable and safe from failure at one single point.
Cryptography: Cryptography is a technique in which a plain text is encoded into the cipher text to prevent any unauthorized person from having access to it.
Peer-to-Peer: There is no need for any middleman for enacting transactions as these can be done directly between the participants.
Here’s a list of cryptocurrencies which have grown famous over time:
- Bitcoin(BTC): Bitcoin has dominated the whole crypto world and is currently known as the gold of the crypto market. It’s market value has already seen a figure of more than $35,000. And thus as a point of investment, it has already gone out of the purchasing power of a common man.
- Litecoin(LTC): The second most popular of the cryptocurrencies, Litecoin is rightly dubbed as the crypto silver by many. Such name is explained by the lower cost and huge popularity of this currency.
- Ethereum(ETH): This is another very popular cryptocurrency which is used mainly for the enforcement of smart contracts, trying to bring financial inclusion where states haven’t been able to provide the facility.
Trading in Cryptocurrency
To start trading in cryptocurrency, you need a cryptocurrency wallet to keep your crypto-money in it. You can either use a dedicated wallet or use the ones which are provided by the crypto exchanges like Binance, Coinbase, etc. It can be somewhat daunting for beginners to trade here. To help them out, a relatively new entrant in the form of crypto signal providers, gives the traders clues about how they should go about trading. MyCryptoParadise, with the help of its expert team of veterans, has been providing quality signals since its inception. Its personal coaching facility promises to turn a newbie into an expert in no time. For this reason, beginners always prefer to opt for signals provided by such legit and established sources only.
