Everyone has heard how Bitcoin and other cryptocurrencies have made millionaires what they bought just a year ago. Gains of 1,000% or more are not simply possible, they are commonplace with many of these cryptographic currencies. Someone who bought Bitcoin in May 2016 for less than $ 500 would have gained 1,400% in about 17 months. Then, in recent days, we've seen Bitcoin losing almost $ 1,000, so to say that these encrypted coins are volatile would be a huge understatement.
Since the establishment of Bitcoin in 2008, we at Trend News have been skeptical of cryptocurrencies & the ability to survive, as they pose a very clear threat to governments who want to see and tax all transactions. But while we can still be careful about real cryptographic currencies, we are well aware of the potential of the underlying technology that empowers these electronic currencies. In fact, we believe that this technology will significantly disrupt the way data is managed and affect every sector of the world economy, as well as how the internet affects the media.
Here are some questions and answers to get you started …
Q: What are Crypto Coins?
The best known cryptographic currency (CC) is BITCOIN. It was the first CC, launched in 2008. Today there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero and all are "virtual". There are no "natural" currencies or currency.
Q: How does CC work?
CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because every Blockchain database is widely distributed, it is considered to be immune to hacking, as there is no central point of attack and every transaction is visible to everyone on the network. Each PC has a group of managers, often called "miners", who validate the transactions. A CC called Ethereum uses "smart contracts" to validate transactions. Crypto TREND will provide more details on upcoming news releases.
Q: What is BLOCKCHAIN?
Blockchain is the technology that supports all CCs. Every transaction to buy, sell or exchange CCs is entered in a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry as transactions can be executed quickly and easily, reducing or eliminating fees. Technology is also being considered for applications in many other industries.
Q: Are CC exchanges regulated by the government?
For the most part, the answer is NO, which for some users is a major attraction of this market. It is the "wild west" at the moment, but governments in most developed countries are examining this market to decide what regulation they may need. A great decision is whether to treat CC as a currency or a commodity / security. Canada and the US have so far stated that CCs are legal, but the situation remains fluid in terms of reporting and tax implications. Crypto TREND will monitor and report on these developments.
Q: How do I invest in this market?
You can buy, sell, and exchange CCs using our specialized brokerage services. You start by selecting an Exchange, creating an account and transferring the fiat currency to your account. Then you can place your orders BUY and SELL CC. There are many exchanges around the world. Opening an account is quite simple and all of these exchanges have their own rules on initial funding and withdrawals.
Crypto TREND will recommend CC exchanges in the future.
Q: Where can I keep my CC?
To have the freedom to move your cryptographic currencies and pay your bills, you will need to have a digital wallet. These wallets come in a variety of formats such as desktop, cloud based, hardware (USB), mobile phone and paper. Many of them are FREE, however, security is a big factor that no one ever wants to lose or steal his wallet. Crypto TREND will set up digital wallets in the future.
Q: What can I do with my CC?
Along with investing in CC products, you can also use the cryptographic currency for some financial transactions, such as money transfers and payment accounts. The list of companies that accept encrypted currency is expanding rapidly and includes major hitters such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What's next?
As we get started, we will keep Crypto TREND articles short and keep everyone's scope as narrow as possible. As we noted earlier, we believe that encrypted currency technology will be a game changer and potential investment opportunities like this one or two times in a lifetime. Make no mistake, early investing in this area will only be for the most profitable capital, the money you can afford to lose.
Even if you do not wish to invest at this time, acquiring an early understanding of this new technology will put you at a premium to benefit from our recommendations as we move forward.
Expect to see more new and specific recommendations from Crypto TREND as we embark on this journey into what a foreign jungle might initially look like. This is a volatile market and may not appeal to all investors, however Crypto TREND will be your guide if and when you are ready.