Cryptocurrency – what is it and how to start investing?
Cryptocurrency is an innovative solution in the world of economics. It is a breakthrough internet technology. It cannot be said that cryptocurrency is simply virtual money, although this definition can be found quite often. In fact, using cryptocurrencies as a means of payment is only one of the possible applications of the system.
It should be noted that cryptocurrencies are a system based on peer-to-peer networks, i.e. fully distributed, which does not have a central unit, organization or place. Network nodes are the computers of cryptocurrency users through which transactions are exchanged, settled and authorized.
Field of investment and conducting transactions
Cryptocurrency in the field of investment and conducting transactions is a very safe means because it uses advanced mathematical and cryptographic methods that prevent its double issuing, counterfeiting or theft. The entire cryptocurrency system is based on blockchain technology.
Cryptocurrencies – how to start?
Investing in cryptocurrencies begins when you join – the user’s authorization in the system, when his cryptocurrency wallet is created automatically. He has full control over his wallet, thanks to access via an encrypted private key.
The investor’s portfolio may contain any cryptocurrencies, in fact representing property, real estate or shares. Users can assign different values to each unit using specialized applications.
What cryptocurrencies to invest in?
Currently, over 200 cryptocurrencies are listed on cryptocurrency exchanges around the world, of which the most popular is bitcoin, with the symbol BTC. This is the first digital currency in the world, used to handle transactions through public trading points, exchange offices, banks and the internet.
The idea of bitcoin is based on a blockchain, i.e. blockchain, i.e. an open network that can be accessed using simple applications, exchanges and trading points. Cryptocurrency transactions, including bitcoin, are public. The number of bitcoins is constant, set from the beginning at 21 million pieces, which limits inflation and deflation.
Each bitcoin is divided into 100 million smaller units called satoshi. In November 2017, the bitcoin price exceeded the record limit of 8 thousand. dollars. It is worth investing in such cryptocurrencies that are widely recognized and have a certain value.