Cryptocurrency is the word we have become aware of after creating a massive impact in the financial world. When the value of Bitcoin became $65000, people started showing more and more interest in digital coins. Therefore, the investments in cryptocurrencies increased, and investors became aware of the market potential of digital currency.
What is Cryptocurrency?
Cryptocurrency or digital currency is a form of payment that can be used to buy goods and services; it means that you can exchange these digital currencies you have with the merchants you are buying your goods from. Cryptocurrency uses blockchain technology. Blockchain is a kind of technology that records transactions occurring throughout the internet. The best of blockchain technology is that it is highly secured, and every transaction gets recorded literally in a chain-like formation.
The most famous cryptocurrency, Bitcoin’s value, became nearly $65000 in the month of April this year. Still, its value also became nearly half in the following month of May. So you can see that digital currencies are very much volatile.
What is the worth of Cryptocurrency?
The combined value of all the digital currencies was worth 1.3 trillion US dollars in June 2021, although, in July, these numbers were at 2.2 trillion US dollars. If you follow the records, you will see drastic ups and downs in the chart. Therefore these currencies are not stable.
How many digital currencies are available?
According to CoinmarketCap.com, a marketing researching agency, more than 10000 digital currencies are traded in public. Also, these digital currencies continue to generate money using the ICO or Initial Currency Offerings.
How can you buy cryptocurrency?
Numerous digital currency exchange platforms have emerged where you can easily make investments and trade cryptocurrencies. These platforms charge a certain percentage of the fee for investing and trading through their platform. You can go through the websites of these companies and know the details of their services.
Are digital currencies legal?
If you are questioning the legality of cryptocurrencies, then it depends on the individual countries because the trading of digital currencies is allowed by the United States, where China has entirely banned any kind of trading using cryptocurrencies.
Tips to avoid fraudulent ICOs
For anyone willing to invest in ICOs, then keep the following points in mind:
- A well-known person who has a solid background.
- If there is any major investor investing, then it is also a good sign.
- If the currency is already developed or the company is raising funds to develop more currencies.
Investing in digital currencies can be risky, but the rewards are also very high. So trade carefully and keep track of your investments. Also, beware of fraudsters and verify everything before investing your money.
