Cryptocurrency is a type of digital asset that uses cryptography to secure its transactions and control the creation of new units. Globally, cryptocurrencies have become popular as an alternative to fiat currencies, especially in times of economic uncertainty. There is about $158 billion worth of cryptocurrency in circulation today, with Bitcoin accounting for the lion’s share at $130 billion.
If you want to sell, buy and trade crypto assets, you can do so on a cryptocurrency exchange. Many online platforms allow you to buy, sell, or trade cryptocurrencies in exchange for other digital assets or fiat currencies. For example, https://swyftx.com/ is one of Australia’s most popular cryptocurrency exchanges.
The History of Cryptocurrency:
Cryptocurrencies first appeared in 2009, with the introduction of Bitcoin. Satoshi Nakamoto, an anonymous person or group, invented Bitcoin. It was formed as a peer-to-peer electronic cash system, allowing online payments to be sent directly from one to another without a central authority.
Many other cryptocurrencies have emerged since then. Ethereum, Litecoin, Bitcoin Cash, and XRP are among the most popular. Altcoins, or alternative coins, are another name for cryptocurrency.
Cryptocurrency Prices:
Cryptocurrencies are often volatile, meaning their prices can fluctuate wildly. For example, in December 2017, Bitcoin reached a high of almost $20,000 before crashing to around $12,000 just a month later. Ethereum has also been highly volatile, with its price crashing from around $1400 in January 2018 to less than $100 just six months later.
What is Cryptocurrency Mining?
Cryptocurrency mining is how new units of a cryptocurrency are created. Miners are rewarded with a cryptocurrency for verifying and committing transactions to the blockchain ledger. Ethereum, for example, uses a Proof of Work algorithm that requires miners to solve complex mathematical problems to add transactions to the blockchain.
What is the Future of Cryptocurrency?
Some experts have predicted that Bitcoin will become a reserve currency used by central banks to issue digital currencies. Others have predicted that Ethereum will become the dominant platform for decentralized applications. It is also possible that a new cryptocurrency will emerge that can solve the existing problems, such as scalability or governance.
However, one thing is certain: the cryptocurrency market is here to stay.
Benefits and Risks of Investing in Cryptocurrency:
Investing in cryptocurrency comes with several risks. The most obvious risk is that the prices of cryptocurrencies are highly volatile and can crash at any time. Another risk is that there is no regulatory framework for cryptocurrencies, which means investors have no protection if something goes wrong.
However, there are also several benefits to investing in cryptocurrency. One of the most appealing is that cryptocurrencies are not subject to inflation, meaning their prices are not affected by factors such as government policy or the printing of money.
Another benefit is that cryptocurrencies offer a high degree of anonymity, appealing to many investors. Before investing in cryptocurrency, you need to understand both the risks and benefits.
Tips to Choose Platform for Investing in Cryptocurrency:
1. Assure the platform is reputable and has a good track record.
Did you know that over $930 million worth of cryptocurrency was stolen in the first nine months of 2018? That’s why it’s crucial to confirm the platform you’re using is reputable and has a good track record.
Some things to look for include:
– How long has the platform been in operation?
– What is the company’s history?
– How easy is it to use the platform?
– What is customer support like?
– What fees does the platform charge?
– What security features does the platform have?
Answering all such questions will help you choose the right platform for you.
2. Make sure the platform is available in your country.
Not all platforms are available in all countries. For example, Coinbase is not available in India. Before investing in cryptocurrency, make sure the platform you’re using is available in your country.
Conclusion
The future of cryptocurrency is still very much up in the air. While there are many optimistic predictions about its potential, several challenges need to be overcome.