Everyone has heard how Bitcoin and other crypto currencies have made millionaires Crypto Wallet of those who bought as recently as a year ago. Gains of 1,000% or more are not just possible, they have been common place with many of these crypto currencies. Someone who bought Bitcoin in May 2016 at less than $500, would have had a gain of 1,400% in about 17 months. Then over the past few days, we saw Bitcoin lose almost $1,000, so to say these crypto currencies are volatile would be a massive understatement.
Since the inception of Bitcoin in 2008, we at Trend News have been skeptical of crypto currencies’ ability to survive, given that they present a very clear threat to governments who want to see and tax all transactions. But while we may still be cautious on the actual crypto currencies, we are very aware of the potential of the underlying technology that powers these electronic currencies. In fact, we believe that this technology will be a significant disruptor in how data is managed, and that it will impact every sector of the global economy, much like how the internet impacted media.
Here are some questions & answers to get us started…
Q: What are Crypto Currencies?
The most well known crypto currency (CC) is BITCOIN. It was the first CC, started in 2008. Today there are more than 800 CC’s, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all “virtual”. There are no “physical” coins or currency.
Q: How do CC’s work?
CC’s are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is widely distributed, it is thought to be immune to hacking, as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of administrators, often called “miners”, who validate transactions. One CC called Ethereum uses “smart contracts” to validate transactions. Crypto TREND will provide more details in upcoming news publications.
Q: What is BLOCKCHAIN?
Blockchain is the technology that underpins all CC’s. Each transaction for the purchase, sale, or exchange of CC’s is entered into a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it has the potential to revolutionize the financial services industry, as transactions can be executed quickly and easily, reducing or eliminating fees. The technology is also being examined for applications in many other industries.
Q: Are CC Exchanges regulated by government?
For the most part, the answer is NO, which, for some users, is a big attractions of this market. It is the “wild west” right now, but governments in most developed countries are examining this market to decide what regulation may be needed. A big decision is whether to treat CC’s as a currency or a commodity / security. Canada and USA have so far declared that CC’s are legal, however the situation remains fluid as for reporting and tax implications. Crypto TREND will be following and reporting on these developments.
Q: How do I invest in this market?
You can buy, sell, and exchange CC’s using the services of specialized “Exchanges” that act as a brokerage. You start by selecting an Exchange, setting up an account, and transferring fiat currency into your account. You can then place your BUY and SELL CC orders. There are many exchanges around the world. Opening an account is fairly simple and these exchanges all have their own rules about initial funding and withdrawals.
Crypto TREND will be recommending CC Exchanges in future.
Q: Where do I keep my CC?
To have the freedom to move your crypto currencies around, and to pay bills, you will need to have a digital wallet. These wallets come in several formats, such as desktop, cloud based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor as no one ever wants to lose their wallet or have it stolen. Crypto TREND will be recommending digital wallets in future.
Q: What can I do with my CC?
As well as investing in CC products, you can also use crypto currency for some financial transactions, such as money transfers and paying bills. The list of companies accepting crypto currency is growing fast, and includes big hitters like Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.
Q: What’s next?
As we start off, we will keep each of the Crypto TREND articles short and keep the scope of each one as narrow as possible. As we noted earlier, we believe that the crypto currency technology will be a game changer and potential investment opportunities like this come by once or twice in a lifetime. Make no mistake, early investing in this sector will be only for your most speculative capital, money that you can afford to lose.
Even if you are not wanting to invest at this time, gaining an early understanding of this new disruptive technology will put you in an advantageous position to profit from our recommendations as we move forward.
Expect to see more news and specific recommendations from Crypto TREND as we start this journey into what may seem to be a foreign jungle at first. This is a volatile market and may not appeal to all investors, however, Crypto TREND will be your guide if and when you are ready.
Bitcoin is a famous digital currency and it is unlike the physical or traditional currencies used across the globe. This is a completely different type of currency because it doesn’t exist in any physical form or shape in the world. They are basically stored technically and used in the internet world. If you want to use bitcoin, it is necessary to have a bitcoin wallet.
What is a bitcoin wallet?
Generally, a wallet for Bitcoin is a software program where bitcoins are safely stored. A wallet is similar to a virtual bank account and allow the person to send or receive bitcoins and save the bitcoins. Those people who use bitcoin and have balance, they receive a private key or secret number for every bitcoin address which is saved in the bitcoin wallet. Without the private key a bitcoin transaction is not possible. You can use your Bitcoin wallet from anywhere in the world.
The main reason behind obtaining a bitcoin storage wallet is to use bitcoin easily and safely. It is a digital wallet that can run easily on your smart phone and computer devices. If you are concerned with hacking, then it is the best option because it gives full security and safety of your bitcoin.
Different forms of a bitcoin wallet
There are several different forms of a bitcoin wallet and each of them are used as per their requirements.
The four main types of a bitcoin wallet are as mentioned as below:
Those who are using bitcoins on a daily basis, such as regularly trading, buying goods and more daily activities, for them Mobile BTC wallet is a great option. It is an app which runs on your smart phone. This will store your private keys and allow you to pay for things or use crypto-coin from your phone easily from any place of the world.
Web wallets allow you to use bitcoins from anywhere easily and on any mobile or web browser. Remember, you must choose your web wallet carefully because it stores your private key online and it can be risky sometimes.
Desktop wallets are downloaded and installed on your computer or desktop and offer you the complete control over the wallet. You can store a private key and create a crypto coin account address for sending and receiving the bitcoins.
Hardware wallets are offline devices and are the most secure bitcoin wallet. They store your private keys offline so they can’t be hacked. This means you can use whenever you want on your computer.
Your coins are completely safe because your bitcoin wallet can only be controlled by you. No other person, unless you share the password can get the details about your bitcoin. Therefore, use bitcoins without the concern of any theft.
Crypto-currency as a modern form of the digital asset has received a worldwide acclaim for easy and faster financial transactions and its awareness among people have allowed them to take more interest in the field thus opening up new and advanced ways of making payments. With the growing demand of this global phenomenon more,new traders and business owners are now willing to invest in this currency platform despite its fluctuating prices however it is quite difficult to choose the best one when the market is full. In the list of crypto-currencies bit-coins is one of the oldest and more popular for the last few years. It is basically used for trading goods and services and has become the part of the so-called computerized block-chain system allowing anyone to use it thus increasing the craze among the public.
Common people who are willing to purchase BTC can use an online wallet system for buying them safely in exchange of cash or credit cards and in a comfortable way from the thousands of BTC foundations around the world and keep them as assets for the future. Due to its popularity, many corporate investors are now accepting them as cross-border payments and the rise is unstoppable. With the advent of the internet and mobile devices,information gathering has become quite easy as a result the BTC financial transactions are accessible and its price is set in accordance with people’s choice and preferences thus leading to a profitable investment. Recent surveys have also proved that instability is good for BTC exchange as if there is instability and political unrest in the country due to which banks suffer then investing in BTC can surely be a better option. Again bit-coin transaction fees are pretty cheaper and a more convenient technology for making contracts thus attracting the crowd. The BTC can also be converted into different fiat currencies and is used for trading of securities, for land titles, document stamping, public rewards and vice versa.
Another advanced block-chain project is Ethereumor the ETH which has served much more than just a digital form of crypto-currency and its popularity in the last few decades have allowed billions of people to hold wallets for them. With the ease of the online world,the ETH have allowed the retailers and business organizations to accept them for trading purposes, therefore, can serve as the future of the financial system. Also being an open source the ETH assists in collaborating the projects of various firms and industries thus increasing their utility. Again unlike the bit-coin which is used for money exchanges in a digitalized network the ETH can also be used for multiple applications besides financial transactions and do not require prior permissions from governments due to which people can use them with their portable devices. The price of Ether has also remained stable and it avoids the disturbance of any third party intermediary such as lawyers or notary as the exchanges are mainly software based allowing the ETH to be the second best crypto-currency to invest in now.