The Newest addition to the trends and investment opportunities is that of Cryptocurrency, but amidst this entire trending buzz do people really know what is crypto and how it functions?
What is Crypto?
Crypto well is a form of digital currency that is generated through an encrypted algorithm, the currency though unlike normal currency does not have a central medium of transfer like a Bank or Organization.
Functioning
Crypto works on a Blockchain which is the publicly distributed ledger that records all transactions and keeps all records, the generation of the currency happens through a process named mining which involves supercomputers and complicated mathematics so not everyone is the capacity of being a miner. The money is used and invested using cryptographic wallets.
The Names
There are many cryptos in the market currently the most popular and talked about are
Bitcoin- This is the first cryptocurrency to be traded and made in 2009 by Satoshi Nakamoto whose precise identity is unknown.
Ethereum- Developed in 2015 it is the most popular one after bitcoin and is a Blockchain platform with its own currency.
How to get started
You can buy the currency through two main processes either through a trader or through a crypto exchange. After this, you would need to fund your account through real currency money Like Pounds, Dollars, or Euros through debit or credit cards.
After you have added money to your account it is time to buy your crypto finally, this could be through Bitcoin trust, Bitcoin Mutual Funds, and Blockchain or ETFs.You can now store this in two ways either with Cold Wallet which is an online software to protect your crypto from hacks and thefts or through Hot Wallet which is also a hardware wallet or offline method of storing the data.
Is it a good option for investment?
Yes, but the risk involved is very high as the prices and the market of crypto are very unstable and experience super highs and lows very often, it is also dependent on the production or mining of the currency which makes it risky, but this reason also makes it a very profitable investment if sold at the right time and bought at the right time.
This was a brief insight into the new world of digital money that may become your future currency for transactions.