This blog article is for whoever likes to hear about money, wealth, and profit. Friends, I’m happy to bring this article to you on the topic of cryptocurrency. After watching this article, you will learn to enter the world of cryptocurrency. What is a cryptocurrency, What are its risks, How to make money out of it and why is it so famous?
So watch this article carefully, in the past few years cryptocurrency has become the biggest asset class.
Let me tell you a few facts
- in 2010, bitcoin was worth $1 Today it is worth $50000.
- in 2015, Ethereum was worth $1 Today it is approximately $3000.
Where else will you find such a return of profit?
- Ever since big corporate names like Elon Musk and Tesla have created havoc by accepting bitcoin as payment.
- El Salvador’s government made bitcoin its legal currency.
- Precious financial institutions of the word have started using ripple in their transactions.
- then Facebook came and it created havoc with the metaverse.
if you don’t understand this asset class you will be left behind.
What are Bitcoin?
normal people know very less about cryptocurrency, they think it is some rocket science. those who are unaware of this world every cryptocurrency is bitcoin for them. let’s increase your knowledge first Bitcoin is just a cryptocurrency. there are more than 5000 cryptocurrencies apart from Bitcoin, a group of cryptocurrencies is known as altcoins. all these are cryptocurrencies, only Bitcoin is not a cryptocurrency.
What are cryptocurrencies?
Cryptocurrency is a digital asset, don’t think that you can touch it, it is a digital asset, it is transferred through the computer network. only two people know of this the seller, the buyer, and the crypto exchange platform which charges a certain percentage. the best feature is that cryptocurrency can not be copied. any transaction cannot be repeated, cryptocurrency cannot be replicated. this is an intense transaction That is completely safe and secure.
4 Steps to start your crypto Journey
this is a very risky market there are a lot of ups and downs, and sometimes smaller cryptocurrencies are wiped out. I am educating you through my blog so you learn, carry out dummy trades, and once you understand everything start with a smaller value do not invest in lacs.
let me tell you four steps through which you can invest in cryptocurrency and how your journey can begin today.
Step 1 select the right Crypto Exchange and Open your Trading Account
Is to select the right Crypto exchange and open your account. there are many private exchanges you will have to choose one and open your account. since I have to suggest something, I will suggest Kraken. you can select this exchange and open your account. before opening the account they will ask for a lot of verification known as KYC. although it is super fast it asks for a residence card, this is important because it reduces the risk market otherwise, there would be a lot of criminal activities. So First, do you KYC.
I have suggested a Kraken because you can deal in more than 120 cryptocurrencies your field is expanded, and you don’t have to visit different exchanges for different coins. there is a large population of traders using this exchange, which builds trust on the platform.
they have their own website Kraken.com, where they constantly update you about changes and give you crypto information so you will remain well aware. So From the link, you can download the app.
let me remind you again, first learn, do not take any big risk without learning.
Step 2 Fund your account
once you have read the article, carried out dummy trades, and understood operations, then transfer some funds from your bank account and begin your journey with a little amount.
let me say this again start small do not add all your eggs in one basket. Cryptocurrency should be a part of your whole portfolio Which contains land, metal, stock market, and Mutual Funds. Do not spend big money on greed.
Step 3 Choose an Investment Strategy
Whether it will be short-term or long-term. those who want to trade short-term invest a small amount, the value increases and they sell it. then they buy again for a smaller value and again sell it off once it increases. this is called a trader.
But let me warn you unless you are a full-timer in this field you cannot earn a huge amount. if you are full-time you can do short-term trading. the person who is a part-timer for wealth, creation goal your strategy should be long term. Until strategy is long term you cannot being your story that in 2015 Bitcoin was one dollar and now it is $50000. these stories will not be fulfilled in the short term.
there are lots of currencies. please do not invest in a single currency based on a rumor, news, or anything, because sometimes an entire currency is wiped out. once your risk is divided it will not matter if a currency is wiped out.
I will not recommend any currency until you yourself study it, and understand the fundamentals. because every coin has a purpose, no matter which coin, it is used for something special. as I said before ripple is used for financial transactions, Ethereum is used for gas-based transactions, Bitcoin has become a legal tender for some countries.
you need to understand which currency is used for which purpose, only invest long-term once you know the purpose.
Step 4 Choose the Right Locker to Store Your Cryptocurrency.
as you need a locker in the bank to keep jewelry, or you need an account to keep money, similarly you need to choose the correct locker to keep cryptocurrency.
let me tell you a sad story
Stefan Thomas, a programmer has a very sad story you will definitely cry if you were in his place 99% of you would have committed suicide.
Stefan Thomas was hired by Bitcoin to write their program. he was given 7002 Bitcoin for writing the program, back then Bitcoin had no value and he wrote down the password on paper and forgot about it. his mother threw out that paper and the password was lost. he made 8 attempts to retrieve the password, the total number of attempts is 10 he only has two attempts left after which Bitcoin will disappear he will not be able to retrieve it.
multiply 7002 Bitcoins with $50000 Dollars I can’t even calculate. I request you if you are a mathematician, calculate the amount and comment below.
friends if you buy Crypto with your personal savings and do not choose the right locker everything will be gone to waste. please select the right locker. similarly save your password in a different place, if you do not tell anyone and hide it away and it is lost it will be very bad.
Is Cryptocurrency Market Regulated?
no my friend, it is a very deregulated market, it keeps going up and down because it is decentralized. no government or bank knows when a currency was created, who created it, where it was created, and why it was created. they don’t even know this hoe can they manage and regulate. but there is no doubt that cryptocurrency is a miracle marvel. people say that in the last decade, the biggest discovery was cryptocurrency and Cryptocurrency will become the most revolutionary result-giving thing of the coming decade.
new people must have understood what cryptocurrency is, Where can they begin an investment. let me repeat that you need a lot of discipline, keep learning then do dummy trading then start with a small investment then make crypto a small part of your huge portfolio.
let me tell you one important thing. there are different rules in every country regarding cryptocurrency. In some countries, all exchanges are not recognized only some exchanges are recognized. In some countries, all coins are not recognized only some coins are recognized.
where ever in the world you are reading my blog please keep the legality of cryptocurrency in your mind.
Cryptocurrency Q&A
What is cryptocurrency?
Cryptocurrency is a virtual currency, which was introduced in 2009. The first cryptocurrency was the most popular Bitcoin.
How does cryptocurrency work?
Cryptocurrency decentralized systems allow users to send and receive payments without the need for a central authority such as a bank or government.
Cryptocurrencies use a distributed ledger technology, called a blockchain. Which is a secure digital record of all transactions that, once written, cannot be changed. Each block in the blockchain contains a record of multiple transactions, and cannot be modified once a block is added to the blockchain.
Cryptocurrencies use various consensus mechanisms to ensure that the network reaches a consensus on the state of the blockchain. Such as proof-of-work (Bitcoin) or proof-of-stake (Ethereum), these mechanisms ensure that the blockchain remains secure and tamper-proof.
Is cryptocurrency a safe investment?
No, Cryptocurrencies are highly volatile and their prices fluctuate greatly. Hence it may not be suitable for all investors. It is important to thoroughly research a specific cryptocurrency, considering your financial situation and risk tolerance, before investing in cryptocurrency.
You should also be aware of the potential risks associated with investing in cryptocurrencies. Such as the risk of cyber-attacks and market manipulation. In general, it is always a good idea to consult a financial advisor or professional before making any important investment decisions.
How do I buy and sell cryptocurrency?
First, you choose your cryptocurrency exchange, once you have chosen an exchange, you will need to create an account.
To buy cryptocurrency you also need to deposit funds into your account and once the funds are in your account, you can use them to buy cryptocurrency.
You have to follow a similar process to sell cryptocurrency. Once you have completed the buy or sell transaction, you may also wish to withdraw your funds from the exchange.
What are the most popular cryptocurrencies in the US?
Bitcoin, Ethereum, Litecoin, XRP, Bitcoin Cash, EOS, Stellar, and Tether.
How is cryptocurrency taxed in the US?
Friends, in the United States, the Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes. This means that if you buy, sell or exchange cryptocurrencies, you will owe tax on any capital gains or losses.
The specific tax treatment of a cryptocurrency transaction will depend on the type of transaction and whether or not the cryptocurrency is a capital asset in the hands of the taxpayer.
Can cryptocurrency be hacked or stolen?
Yes my friends, cryptocurrency can be hacked or stolen. Because cryptocurrencies are stored in digital wallets and are vulnerable to hacking and cyber attacks. Hackers can gain access to these wallets and steal the cryptocurrencies stored in them. So if you are interested in or investing in cryptocurrency, you must use strong passwords and enable two-factor authentication.
