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Sunday, 3 December 2017

Beginner's Guide On The Concept Of Cryptocurrency

Cryptocurrency by definition

Hello guys, I have been checking out recently on google about cryptocurrencies and realized that there is no site which properly describes what cryptocurrency is? So let's talk about it.

It's a currency which is available online in order to send and receive payments and pay for things etc.
Let me explain you in simple words that nowadays we are using Debit Cards which is a form of cash for online banking purposes like to transfer or to buy products and all this happens under a third-party authentication which must guarantee for each transaction.
cryptocurrency
Cryptocurrency

 
For example: If I directly want to send money to my friend or any merchant then it must bring attention to the third party that I promise to pay the bearer sum of 5000 bucks according to their terms and conditions then the third party must guarantee the transaction which includes some charges or fees whereas while using cryptocurrency the third party is not necessary to guarantee the money it won't change it is standard currency which is decentralized no third party should authorize or attend she ate no conversion charges which also saves time for online transfers.

We can transfer the money worldwide within few seconds if we are using cryptocurrencies.

If we want to buy any product say laptop or  tickets for entertainment shows we are dependent on our personal banks for transfers or any physical sort of cash which always includes terms and conditions regarding the charges and other things whereas in cryptocurrency this bank is not necessary to act as a medium say the transfer of money or for receiving payments.

Cryptocurrency is a decentralized currency which means that we can directly transfer to the person, friend, merchant or to buy a laptop, jewelry, pay the hotel bills, book tickets all of this can be done within seconds and you will also get good discounts on the product or services you avail through it. Seller and the buyer must accept the offer to complete the deal.

We are moving into a cashless society which is totally evolving into a digital world in which our currency has been changing so we must adopt it as its easy and safe.

Hype for crypto market and bitcoins


Let's talk about cryptocurrency market and its movement of altcoins are going through. Recently the crypto market cap is on 308 billion dollars on November 28th 2017 which is pretty crazy on how fast it's growing especially because a few months back when the China crackdown exchanges then the crypto market went down around 100 billion maybe or even lower but this is a huge amount of growth as well as with the 24-hour volume which is 13 billion dollars.

After the China issue the volume hit its all-time high at 11 billion but nowadays the market cap volume is increasing like anything as well as the Bitcoin dominance is at 53.9% which is high but it did fall back to the 50%  approx a month before and then in the very first week of November it did go all the way to 62% even when all the altcoins price were down and Bitcoin was rising which was an amazing news for those who trade in btc but I think it's getting balanced out again which is also a positive sign for marketers.
bitcoin-first-cryptocurrency
Bitcoin, The First Cryptocurrency
Recently if we have a look on the  Bitcoin rate which is nearly 10 thousand dollars with a volume of 5 billion and we had 3.55% increase over the 24 hours so a single Bitcoin is at such a high price which in fact is really good to see that it's going up.

 But when there is so much hype going around then my mind starts questioning because I know that cryptocurrencies are going to be the future of a digital world with the blockchain technology and so many other odd applications that can be built on top of it is limitless.

However, the price of cryptocurrencies that can be a little bit more balanced out and this kind of growth in Bitcoin is driven by the financial opportunity of the people so all these people don't really know what cryptocurrency is about!

 They don't know what they're investing into other than that they see the price increase every day in the crypto market and they keep hearing from their friends and on social media that this is a great investment or opportunity which will go double or even more in  the next coming years and that's all they hear.

What that brings is new investors in a cryptocurrency market which is good but it also brings a lot of shaky investors which enters the market for a huge motive of profit earnings.

They come in and they want to see everything grow rapidly so if it doesn't then they don't have the patience to hold the coins and they sell them off which can have a drastic effect on altcoins price as we all are aware that these cryptocurrencies are highly volatile which makes hard to trust them.

Also, the prices are getting way too high which I believe might be wrong if people take their decision without thinking and selling because when they see next year, the coin price reaches up to $20,000 or more then they might regret their decision.

Best way is to evaluate the crypto market cap and take decision accordingly as if I talk about the price of bitcoin which is 10,000$ and also have a lot of possibility that it might touch 20 to 25,000$ at the end of next year which is going to be a real decision making for a lot of people because as much as they want to put more money into it there is a possibility of pullback and heavy correction maybe even 50% down because of its volatility.

 So there's always a risk and therefore you do need to be careful of what you invest in because cryptocurrency market keeps on changing rapidly and sometimes it doesn't always go up as you can see in the crypto market cap, a couple months back we had almost a month of straight downwards and people invested into it and the next day it again went down and this constant cycle continued.

Therefore just be careful of what you invest into and how much you should invest. Always invest what you can afford to lose so I'm heavily against taking out loans to invest in cryptocurrencies or anything so it's just an advice from my side.

Also what I do is I just invest my own money that I can afford to lose but it would be great to make a profit out of it and that's what I do so kind of long-range based on Bitcoin but that could be applied for any cryptocurrencies in which you are interested in.

Ethereum: The next big coin

Ethereum is the second most demanded coin after bitcoin as we all know. So let's see what's the crypto market cap stats are for this altcoin. Ethereum is at 454 dollars which is quite high because I saw Ethereum dropping from 377 in June to 200 dollars in a month and I felt like if it will fall more but it's actually going on a pretty constant rise which is very interesting.

As according to the crypto market cap, this coin has a lot of possibilities to rise in future but I want to do more research on it and will discuss on this altcoin price in my further posts.

Bitcoin Cash

Ok so let's talk about this altcoin which seems similar to the bitcoin as its name suggests but there is a lot of difference because when the bitcoins were split then this coin was created.

As bitcoin cash is at 1,403 dollars now in the crypto market and as already told that it's a fork of bitcoin because of some people like it a lot as they want to make a profit out of it and there is a possibility that this coin might go up to 40 to 50% in the coming year.

That's the main reason behind people to invest into it in order to get huge profit's as its price is still lowered then the ultimate bitcoin.
crypto-market-cap
Cryptocurrency Market Cap
But there's a lot of confusion out there because of its name and also some people see it simply as a copy of Bitcoin and they are trying to be Bitcoin themselves or at least advertise themselves as Bitcoin which  is not possible because there's only one Bitcoin and that is to be a decentralized peer to peer cryptocurrency.

Ripple

This can be a big profitable coin in the coming year as this cryptocurrency has a lot of potentials and due to its consistent ongoing growth recently people are showing a lot of interest in ripple.

Its price is 0.2 dollars which is very low if we compare it with the above altcoins price but it doesn't mean that its useless or waste.

Its current crypto market cap is high which is 9 billion dollars and it will give a good profit margin if someone has good holding power and can hold it for longer.

There are huge increase in other altcoins price and has a huge potential to survive in cryptocurrency market for a long run and I will be discussing on those coins for sure. I will also invest in a lot of coins which I know has a good future and can give a good return.

It's just that cryptocurrencies are highly volatile so always think before you invest and always invest that much which you can afford to lose.

To wrap this up if you face any problems or want to get any advice on crypto market or altcoins then you can comment below and I will try to do the best I could.

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