Cryptocurrency 101. What You Should Know

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Cryptoconversions are having their moment. You've probably heard something about Bitcoin and Ethereum. A saber, their prices seem to be outstanding (or plummet, depending on the day).

Do you want to know more about this? come on:

What is Cryptocurrency?

Cryptography is all about coding to keep data safe. Bitcoin is one of the first cryptocurrencies to hit the scene. It was released in 2009 by "Satoshi Nakamoto", a pseudonym that is part of a group (it was open source and peer-to-peer). The thing is, there is no central agency (like the government) that regulates these cryptocurrencias.

That is why it has been such an attractive option for shady business activities, such as money laundering. You can buy and sell it like any other investment, from the shares of the company Beanie Babies.

Is Cryptocurrency a good investment?

Some people say that investing is like playing the lottery. However, that is not quite accurate. A long term, ample investment, the type of investment that defended here and the type that helped build the nest egg over time, is very different from speculation, active trading, which is much more like the game. Cryptoconversion, a volatile and unpredictable investment, falls into this category.

With trading active, you are making a decision on how specific investment (or investments) will be traded in the short term. The goal is not simply to keep up with the stock market as it is with long term investment, The goal is to make a lot of money and get rich quick. And you know, some investors from Bitcoin and Ethereum got rich quick! Looks like a good deal, right? But the thing is, the price of these cryptocurrencies often fluctuates from one end to the other. (On a day in June, Ethereum's price plummeted from $ 319 to $ 0.10!)

In addition, whenever the value of something is triggered too fast, and one thing is what exactly contributes Forbes Clem Chambers predicts: "Crytocurrencies, of which bitcoin is the leader, return to a fall in value and more From The drop of bitcoin has already had Ya. "

Not to mention, there is also an old adage of investment, "buy low and sell high." If you are already bought, you are now buying high. However, there are no security protocols, and most of us do not really fully understand how "Most people have no idea how Bitcoin or Ethereum work, nor do they understand how to challenge monetary theory, is a dangerous formula for Volatility and potential loss of money, "says writer Sean Williams. The Bottom Line: Getting rich quick schemes rarely work well. Sure, people occasionally win the lottery, but for most of us, investing should not feel like playing the lottery. It should be a long game, which allows gradually building wealth over time with much less risk.

How to buy Cryptocurrency?

That said, if you are going to invest in cryptocurrences anyway (maybe you do not want to replace your entire retirement portfolio, you just want a little taste), here's how to go about it. Coinbase website seems to be most popular to buy Ethereum, Bitcoin or Litecoin. It's also the easiest, according to Inc. According to Brian Evans of Inc.com. You must verify your account and then you can add different payment methods to buy your chips (bank accounts, wire transfers, credit or debit cards).

You may be lucky with these new and bright investments, but in reality, wealth creation is quite boring: buy a wide and diverse funds and keep a long over the years. It's not as sexy as cryptography, but it's probably a safer bet for your hard-earned money.

Well this a few things that we should know about cryptocurrencies, is a new world and please let me know what do you thinking about this.

Please reply if think that anything is missing here. Greetings and blessings for everyone.