This article is for those enthusiasts who are going to conquer the cryptocurrency market in 2020. Let’s review several simple things that everyone must know before getting involved in the crypto industry.
How does blockchain work?
Google will give you hundreds of answer options and they will all be like: “chains of blocks containing information”, and so on. Everything could be explained easier.
The very essence of the blockchain structure is that all the information in it cannot be faked or corrected. For instance, imagine a decentralized system where everyone is telling the truth. And everyone keeps the records of who said that. If a discrepancy appears in someone’s record, false information is immediately disclosed. By the same principle, chains of blocks work in the ledger.
Are bitcoin and blockchain connected?
Yes, they are. It is like Microsoft Word services based on the Windows operating system. Blockchain is the basis of cryptocurrency, its foundation.
Why doesn’t cryptocurrency cost $0?
Despite the lack of material support, cryptocurrencies depend on demand, economic, and political upheavals in the world.
Initially, the value of each unit of the currency grew because it was known in advance about the limited number of issued cryptocurrencies. There are 21 million coins and no coin will ever be issued in the future. So, it became more and more difficult to mine bitcoin. Thus, the process increased the cost of electricity and, respectively, the currency rates.
Not only cryptocurrencies itself as a financial instrument, but also blockchain as the high technology attract a large number of investors. That trend has also triggered new highs in the market value.
Who is the creator of bitcoin?
No one knows. A scientist from Japan, a group of hackers, or even someone on request of the US government — there are many guesses, but the identity of Satoshi Nakamoto has not yet been disclosed. With its anonymity, the creator of Bitcoin emphasizes the anonymous nature of the cryptocurrency itself, which is quite symbolic.
Is it too late to invest in cryptocurrency?
That’s what only lovers of raising easy money, fanatics of the 2017 boom, when bitcoin broke its maximum of $ 20,000, may tell you.
It’s never too late to invest in cryptocurrency. Today you can play on volatility both long and short. A useful tactic would be to buy a large amount of crypto and sell it in small sums at a higher price. In this case, it is necessary to carefully study the market and invest the money that, if you might lose, will cause no consequences.
Today, cryptocurrency is used not because it is hyped but because it is profitable and interesting. As once plastic cards replaced cash, so now such cards will gradually be shifted by digital currencies.
Where to buy cryptocurrency?
No hints here. Just go to my Telegram bot, where you can buy, trade, store, and send cryptocurrency to your friends. With love, Chatex!