Categories: Latest News

The ultimate crypto investment guide-2021

Cryptocurrency can be traded for profit, and it can be used for buying different products and services as well. Cryptocurrency uses a decentralized ledger system for a transparent and unchangeable record of transactions. All cryptocurrencies are unregulated, and thus they are free from any direct influence from the authorities. This feature of cryptocurrencies also makes them a very risky investment, and thus most investors only invest with the intention of generating profit in the long run. Tactics like social media hype are used to drive the prices of these currencies skywards momentarily, but these fluctuations in prices don’t last long.

The most well-known cryptocurrency is blockchain, and this currency had a very fluctuating price graph in the year 2021. The coronavirus pandemic affected the value of almost everything, and bitcoin was no exception to it.you can check the eKrona review Its value almost dropped to half its price in mid-year and slowly after it bounced back to its original value.

Understanding cryptocurrency

A cryptocurrency is a form of payment, just like regular cash. It can be used as a form of investment as well as for purchasing different items. Many e-commerce companies have introduced tokens that can be used for purchasing their products and services. The tokens provided by these companies can be bought in exchange for real money. You’ll need to spend your money to buy the digital currency, and then you’ll be able to purchase different products in exchange for this digital currency.

Cryptocurrencies are based on a system known as the blockchain. Blockchain is like a digital ledger that holds records of different transactions. In the case of blockchain, the information present inside the ledger is almost impossible to modify once it is successfully recorded. If anyone tries to tamper with the information present inside a single block, the whole chain will become invalid. This feature of blockchain makes it very appealing for many industries and individual investors.

Different kinds of cryptocurrencies

There are almost 10,000 plus kinds of cryptocurrencies that are traded openly in the market. The total value of all the currencies present on the market collectively exceeds the valuation of 1.9 trillion US dollars. Most of this share belongs to the likes of bitcoin and ethereum.

Digital currencies like bitcoin are so popular because of a number of reasons. Some of these reasons are

  • Digital currencies like bitcoin are seen as the future of cash, and people are rushing to buy them before their per coin value increases more than it has in the past decade.
  • Digital currencies remove all the middlemen like the central bank because these currencies have no central management. Since there are no regulatory bodies, the chances of devaluation of these currencies are low as compared to regular cash.
  • Blockchain technology makes cryptocurrencies very secure by preventing any malicious tampering with transactions. Blockchain technology makes these transactions more secure than traditional payment systems.
  • Another reason for the huge popularity of these currencies is the chance of gaining a good ROI incase the currency is appreciated.

Cryptocurrency from an investment point of view

Cryptocurrencies can be a very risky investment especially for those with little to no information about this market. Generating profit with digital currency, especially in the short run, is almost impossible because for you to make a profit on this currency, it is necessary that someone else buys it for a higher price than what you originally paid.

Some experts have advised newbies to steer clear of these investment opportunities because they can easily end up losing all of their hard-earned money due to a lack of knowledge about this market. One feature of cryptocurrency that is preventing it from becoming the mainstream currency for all transactions is its instability. Traders and merchants won’t be able to determine the exact rate of exchange because the value of digital cash is unregulated and keeps on fluctuating.

Most people invest in these currencies to earn huge profits in the long term, which means that investors are less likely to exchange or sell these currencies, making them less volatile than easily available and exchangeable cash.

Purchasing cryptocurrency

Almost all the big names like bitcoin and ethereum can be exchanged for Us dollars. But there are many other digital currencies that can only be bought in exchange for bitcoin and ethereum.

Your cryptocurrency is stored in your digital wallet, from where it can be transferred to any platform for exchange with other currencies or for buying different products and services offered by companies accepting digital cash as a form of payment.

Bottom line

Cryptocurrencies may eventually become the only form of cash used to buy different products and services, but these currencies are still very risky from an investor’s point of view. If you are someone who is inteterested in investing money in these digital currencies, we recommend you spend some time learning the ins and outs of this market.

Tribune Online

Recent Posts

Go after financiers of insecurity, APC chieftain urges Tinubu

Hon. Olatunbosun Oyintiloye, a chieftain of the All Progressives Congress (APC) in Osun at the…

28 minutes ago

Bauchi gov assures fairness, equity in 10,000 job recruitment exercise

As Bauchi State Government opened the recruitment portal for the engagement of 10000 new Civil…

42 minutes ago

NOA takes national identity project campaign to Ekiti Polytechnic

The National Orientation Agency (NOA) in Ekiti has said that it will continue to sensitise…

45 minutes ago

INEC under pressure not to register TNN — Spokesperson

"There is no doubt that INEC is under tremendous pressure, from both the card-carrying APC…

1 hour ago

FG set to settle N4trn power sector debt

The Federal Government has vowed to urgently address the N4 trillion debt crippling Nigeria’s power…

1 hour ago

Insecurity: Self-defence is Fundamental Human Right — Pastor Eneche

“Self-defense is a fundamental human right. It’s in the constitution. It’s in the penal code;…

2 hours ago

Welcome

Install

This website uses cookies.