Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Advancement in technology results in changes, and the blockchain technology and the resultant cryptocurrency is a phenomenon that has brought enormous changes in various financial decisions. Cryptocurrency is a digital currency that incorporates the blockchain technology to enhance encryption, regulate the generation of currency units, and authenticate funds transfer without relying on a central bank. Many people including students have invested in them, and some intend to venture into such investments, but what should an ordinary student know about crypto? Below is everything to know about cryptocurrency:
Research
Before venturing into digital currency trade, do your research. Find out various uses of each cryptocurrency. You can start with the oldest cryptos and those with high market cap. There are many legit coins, but some are scams.
Research is important before embarking on an important decision such as investing in cryptos or other related ventures like writing an essay or a term paper on cryptocurrencies and other topics. If you are writing on any topic, it is important to check plagiarism to ensure a high percentage of uniqueness in your essay. Factual information is key and will lead to successful ventures. You can use a free online plagiarism checker for authenticity.
Investment Decisions
In making investment decisions, it is important to identify what an ordinary student should know about crypto for a more informed decision. If you invest in cryptocurrencies, you will experience price fluctuations like in any other business. In 2017, the crypto world experienced the highest ever profit with many virtual currencies’ prices skyrocketing. In 2018, prices plummeted, for example, bitcoin’s price dropped by 60%.
The cryptocurrency market is volatile, so investing in it will result in gains or losses. Therefore, it is important to invest wisely and safely by, for example, diversifying your portfolio. Monitor the market trend to identify price fluctuations.
If you intend to invest in these currencies, it is not mandatory to buy a whole currency unit. For example, you can buy a bitcoin worth $50 instead of a whole one costing $9000. They can be bought from cryptocurrency exchanges such as Binance, Coinbase, and Bittrex.
What is cryptocurrency used for?
With the currencies, you can exchange goods and services online. You can also exchange other cryptocurrencies or fiat currencies.
By the end of 2018, about 2503 cryptocurrencies were available, but only 25 of them including bitcoin, ripple, and litecoin are dominant in the total market capitalization. Bitcoin is the most popular one followed by ripple. They continue to proliferate because many companies come up with theirs to trade for their products. Investors should provide real currency to get a company’s cryptocurrency and access its products.
Companies’ fundraising through initial coin offerings is common; for example, it raised $100 million in 2016 and many times more in the subsequent years. This is different from currencies that have gone public such as bitcoin. All cryptocurrencies are valued at $708 billion.
Why Many People Prefer Cryptocurrencies
The following are some of what an ordinary student should know about crypto:
- Many people are interested in cryptocurrencies because of anticipated future benefits.
- Also, they don’t rely on central banks.
- It is a secure payment system than other traditional systems because cryptocurrencies result from blockchain technology.
- Blockchain network allows for anonymity devoid of surveillance from others including the government.
- Cryptocurrencies’ value is likely to increase. Bitcoin and etherium’s stability has been evident particularly in 2017.
- Some prominent investors have been against the use of these currencies despite their popularity. This is because they don’t generate cash flows.
- Decentralized transactions resulting from blockchain technology further embellish these cryptocurrencies to users because they rid out intermediaries.
How To Get Cryptocurrencies
There are many companies that issue these currencies. To obtain them, you need to exchange etherium or bitcoin. You can buy them once you get a bitcoin wallet where you will register and buy your preferred currencies using real cash. In registration, you will provide your bank account details.
Authenticity
Cryptocurrencies are legal in some countries like the USA, but others like China have illegalized them. However, buyers should always be aware of fraudsters.
To protect yourself from illegal transactions and fraudsters, you should take precautions including checking a company’s legitimacy to get useful information. Get the company’s prospectus, read its fine print and get the vital information before buying its cryptocurrency. Identify the real owners, other well-known investors investing in it, and other details. By obtaining more details, you will be more likely to confirm its legitimacy. However, hackers also lurk online and can try to access the computer networks to steal assets.
Crypto Exchanges
There are few crypto exchanges available; this will enable conversion of fiat currency into a chosen crypto-base currency. Cryptocurrencies may not be bought using domestic currency but only these bases. Bitcoin, litecoin, and ether are considered base currencies for cryptos. During cryptocurrency exchanges, you can buy certain crypto coins, exchange your domestic currency into cryptocurrency or exchange a particular cryptocurrency for another.
Local crypto exchanges provide limited options because the coins available for trading determine the available exchanges that require domestic currency. Therefore, investors usually purchase base currencies to purchase other cryptocurrencies.
Conclusion
Cryptocurrencies are digital currencies that are projected to have high value in the future, but the concept of blockchain which resulted in crypto creation authenticate some aspects regarding this currency; for example, encryption and anonymity. The concept of blockchain technology has made these cryptos appealing to many students and leads to focus on what an ordinary student should know about crypto for wise investment decisions. Before investing in cryptocurrencies, it is imperative to research the specific crypto and understand all important details about it.
