No one cared about cryptocurrency until it turned some folks into overnight millionaires.
It broke the internet and everyone keeps searching for it because who doesn’t want easy money? But is it that easy?
Cryptocurrency in simple terms-Digital cash. It is a virtual currency. It is not like any other regular currency with a central bank or administrator. It is rather a coinmarketcap, which focuses on other installments as well.
How Does It Work?
Leaving out the technicalities of blockchain technology, it is a simple trading model. Pricing of these coins fluctuates every day and when the user expects a greater return on investment, It is the right time to sell them.
An address is generated for the user at which currency can be sent and received.
People all over the world use it as a payment option for buying goods & items.
A ledger is maintained for every account. Ledger is a track of all your transactions. They get updated with every single transaction.
Investment is putting money into something which is predictable and one can calculate the return. Bitcoin witnesses a fluctuation of 30% on a daily basis. Does it sound safe? It seems to be more like gambling than an investment.
These volatile forms of investment are for those who have large chunks of money for experiment and already have steady cash flows but It is not for the one who aims to build things from scratch as it involves huge risk because only a few have an idea about its an algorithm and how does it work.
It is an entity without a governing body. This makes it scary. Accountability and predictability are the safeguards for your money and virtual investments don’t have both of these.
Everything on the internet is prone to hacking. Hackers have attacked these accounts in the past to do transactions and theft. If someone hacks into the account, it’s close to impossible to retrieve the money & account.