Investing in cryptocurrency: how does it work?
You have undoubtedly heard of Cryptocurrency or at least the
bitcoin. Is there already a bell ringing? It is currently a huge hype, investing in a digital currency. Savings interest rates are getting lower
and people are looking for new ways to invest money. But what exactly is
bitcoin and what can you do with it? We will explain it to you.
Investing in cryptocurrency: what is it really?
Bitcoins,
Blockchain, Cryptocurrency. It seems as if everyone nowadays knows
something about it and has something to say about it. But what exactly
does it mean? Cryptocurrency literally stands for 'cryptographic
currency': encrypted money. You can buy this computer money online and
add it to your digital wallet, just like you would keep your paper money
in your wallet. A big difference with 'normal' money, besides the fact
that you cannot hold it, is that there is no bank involved when buying
or selling digital money.
Also Read: https://investmudrex.wordpress.com/2020/12/16/why-invest-in-bitcoin/
Bitcoin and other cryptocurrency
There
are different types of crypto coins. The best known is bitcoin. It is
the largest coin on the market, with the largest total assets. The
bitcoin is therefore the most popular and chances are that you have
heard of this coin. Some people think bitcoin is the umbrella term, but
bitcoins are part of cryptocurrency. After bitcoin, Ethereum is the
largest crypto coin and there are a few hundred other alternatives, such
as Dash, Ripple, Litecoin and Monero.
How exactly does it work?
The
transactions of cryptocurrency go through blockchain technology: a
database and infrastructure to be able to carry out encrypted
transactions without an intermediary. That sounds complicated, and it
is. The bottom line is that you can theoretically pay securely and
anonymously with your cryptocurrency via blockchain. Blockchain
technology is known for being an encrypted way to perform transactions. Nowadays's there is a greater demand of automated cryptocurrency trading which offer's automated bot trading that combines the benefit and advantage to less experienced traders as well.
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