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Cryptocurrency: The Future And Its Importance

Cryptocurrency can be described as a digital currency that is managed through the encryption of advanced techniques known as cryptography.
Written by Smartandstuck

Cryptocurrency can be described as a digital currency that is managed through the encryption of advanced techniques known as cryptography. Crypto is digital money. It uses blockchain technology and it is considered secure because it is capable of establishing distributed consensus. When you transfer funds in Cryptocurrency, the transactions are recorded in a ledger. Cryptocurrencies are stored in digital wallets.

 

 

Though there are a lot of cryptocurrencies in the system, Bitcoin is the preferred one for most traders due to many factors. Cryptocurrency is of the newest and interesting asset classes available for investors to reap benefits on their income.

However, when investing in cryptocurrency, do not invest more than you wish to lose because it does not have a centralized system of operation where you can seek redress on issues of misunderstanding or take legal action against. You can invest crypto coins in companies which have a total focus on cryptocurrencies and it include mining companies, mining hardware makers such as Robinhood Markets, Inc etc.

Read also: Do You Want To Invest In Wheat Commodities? A Guide for Beginners 

The first cryptocurrency which is Bitcoin was founded in 2009. The main purpose for people who trade in Crypto is to make profits.

Bitcoin Currency

Bitcoin is the first Cryptocurrency founded in 2009. Though there are a lot of cryptocurrencies in the system, Bitcoin is the preferred one for most traders. Bitcoin is digital money which you can buy, sell and exchange digital currency without any mediator like what we have at banks.

Creator of Bitcoin, Satoshi Nakamoto, had an idea to develop a digital currency that uses an electronic payment system called Cryptographic proof.

Every Bitcoin transaction that has occurred exists on a public ledger. This makes it very easy for anyone to have access to it. Also, it makes transactions irreversible and difficult to fake. Looking at how Bitcoin is designed, the coin is not backed by the government or any issuing institution. This makes it very difficult to guarantee the coin’s value because of its volatility despite the trust in the system that the coin is valuable.

Since its launch in 2009, the coin has risen in value to a high percentage. At first, one Bitcoin was sold for $150 as of October 26, 2021. Today one Bitcoin is $45,544. Bitcoin is limited to 21 million coins. This has raised the expectations of many that the price keeps rising as time goes on as more institutions invest in the coin and treat it as a digital gold to offset the risk associated with inflation.

Digital Coin

Digital Coin is more unless referred to as Digital Money. Digital Coin or Money is any form of money that exists in an electronic form. If they do not have physical attributes and are available only in digital format. This means it lacks a tangible form such as Bills or cheques. Digital Coin is transferred using electronic codes in computers.

Digital Coin or money is transferred and can be exchanged with technologies such as Visa cards, credit cards and online Cryptocurrency exchanges. Digital Coins, money or currencies can be used to purchase goods and services just like physical money. Just as it can be used to purchase goods and services, it can also be restricted online in the pitches of goods and services such as gambling portals, gaming sites etc.

Digital Coin can be also used to transact business instantly. Such transactions can happen across borders. For example, a United States of America citizen wants to taste a local dish from South Africa because her wife is a South African and for that he goes online to search for local dishes in South Africa and make payments. The US citizen will be given a deadline for the food item.

The Future Of Cryptocurrency 2022

For the past few months, the cryptocurrency space has transformed beyond expectations. Its growth has been very fast with a clear direction for the future. The growth of the cryptocurrency industry has drawn attention to its footprint.

Dogecoin, Bitcoin and other cryptocurrency are mined to solve complex mathematical puzzles. Pete Hawson who is a senior lecturer at Northumbria University in Britain has predicted that in 2022 Bitcoin can face stiffer oppositions and it might force regulators to act decisively.

It has also been speculated that state-issued coins will start to compete with cryptocurrencies. This is because many countries around the globe are taking trials of their Central Bank Digital Currencies. This year will be a tough one for the cryptocurrency market.

Despite all the challenges the cryptocurrency market will face, experts have estimated that the market will more than triple. Crypto will be valued at $5billion in 2030. This is because cryptocurrency will in the near future become the largest source of transaction.

Upcoming Crypto Coins

Trading in Crypto coins is not as easy as you might perceive. You need to have some knowledge to go about the cryptocurrency market. A lot of people have been successful with crypto coins and a lot have failed as well. This chapter will highlight some new crypto coins that can take advantage of and trade to make profits on your investment.

Binance Coin: Binance Coin (BNB) is a cryptocurrency exchange with more than 100 million traders in its space. It’s a native cryptocurrency. Since its launch, its growth has been steady hitting 10,000%. And for an investment of $1000 in 2017 will be more than $100,000 as of today. The main use of Binance BNB is to allow Binance traders to reduce their commission.

Shiba Inu: This is one of the newest and most important most popular cryptocurrency. Shiba Inu was launched in 2020 and it is a meme coin. Since its launch in August, the coin has grown to a multi-billion asset. The value of one Shiba Inu token has reached over 70 million percent. So in estimation an investment of $200 could afford you 10 million tokens.

Green Metaverse Coin or Token: Green Metaverse is the native token of STEPN. It appeared on Binance Exchange in March 9th 2022. GMT happens to be the native token of web3 lifestyle app STEPN. This means that if you have NFT sneakers, you can walk, jog or run and earn money on GMT and with this you can mint new sneakers on the STEPN app. It has been designed to have social elements as well gamification options. Players who purchase GMTs can use them to unlock features in the STEPN app. According to statistics, GMTs has a total of 6 billion tokens of which only 600 million is on circulation. The Market Capitalization if GMTs is US$342 million and ranked 228 on the CoinMarketCap.

Crypto Currency Coins

There are a lot of cryptocurrency coins on the market and most of them are performing well. This subsection will highlight only two which are the most talked about thus Bitcoin and Dogecoin.

Bitcoin: Bitcoin is the first Cryptocurrency founded in 2009. Though there are a lot of cryptocurrencies in the system, Bitcoin is the preferred one for most traders. Bitcoin is digital money which you can buy, sell and exchange digital currency without any mediator like what we have at banks.

Creator of Bitcoin, Satoshi Nakamoto, had an idea to develop a digital currency that uses an electronic payment system called Cryptographic proof.

Every Bitcoin transaction that has occurred exists on a public ledger. This makes it very easy for anyone to have access to it. Also, it makes transactions irreversible and difficult to fake. Looking at how Bitcoin is designed, the coin is not backed by the government or any issuing institution. This makes it very difficult to guarantee the coin’s value because of its volatility despite the trust in the system that the coin is valuable.

Since its launch in 2009, the coin has risen in value to a high percentage. At first, one Bitcoin was sold for $150 as of October 26, 2021. Today one Bitcoin is $45,544. Bitcoin is limited to 21 million coins. This has raised the expectations of many that the price keeps rising as time goes on as more institutions invest in the coin and treat it as a digital gold to offset the risk associated with inflation.

Dogecoin: It is one of the many coins that have come into existence. Many coins were created to solve problems but Dogecoin was created to make Bitcoin and the foolishness in buying a digital currency that was not backed by any asset. Now Dogecoin has worth and it is a cryptocurrency which can be used to transact business. 

Brief History About Dogecoin: Dogecoin was created by two software engineers, Jackson Palmer who is an Adobe software engineer and IBM software engineer Billy Markus in 2013 following the high price of Bitcoin and it was designed in about two hours. The designers of the “altcoin” based it on the Doge meme which was a Shiba Inu dog who speaks in broken English. It started as a joke on Reddit years ago. It was the product that people started using immediately when it was launched. Within the first month of its release, over a million people visited the dogecoin website.

Palmer, who had been following developments in the crypto world thought about coming out with a unique coin that’ll challenge the big ones in the system and tweeted “Investing in Dogecoin, pretty sure it’s the next big thing”. After his tweet, he received encouragement from friends to put his ideas into reality. Not wasting much time, he bought the domain Dogecoin.com.

Meanwhile, Billy Markus was also thinking about how to create his digital currency that would appeal to a huge demographic. But his thoughts were with him after not making any headway. But he came across Dogecoin after a day or two of the site going public. Markus immediately tweeted Palmer and explained the plans he has for the site. Before Palmer could respond, he started reconfiguring Bitcoin’s source code which was publicly available. He sought to turn its user-facing elements into dogecoin memes.

Both went into partnership and after a week and some days after Palmer birth the idea to create a unique coin which can challenge Bitcoin and other big coins saw his idea come into fruition.

What can Dogecoin be used for?

Dogecoin can be used to transfer money between people as a means of transacting business or just sending cash. Payments can be done without going through an intermediary such as the bank and it is quick and reliable because records of payments are available on the blockchain.

The coin runs on a decentralized network of computers which means that it distributes workloads among several machines instead of relying on a single server machine. The work thus becomes very simple for the programmers of the cryptocurrency because it has several other networks to discharge its duties.

How To Buy Dogecoin

Dogecoin has been widely accepted and if you want to buy it, there are some factors you need to consider before venturing into the dogecoin space. Below are some of the guidelines that will help your thoughts in purchasing the once-joke coin which has become the most sought after coin in the world today;

  • Do not invest more than you’re willing to lose: When planning on how much you want to invest, do not invest more than what you are willing to lose since the coin is volatile and no one will be faulted when all your investments go down the drain. And so you should consider the amount you want to invest which will not affect your finances so much when in any unforeseen circumstances you lose everything. This is because cryptocurrencies are risky investments. For dogecoin’s prices to increase, those investing need to buy more coins on a regular basis otherwise the value of the coin will go up and fall within the shortest possible time. The limit of the number of coins was removed by one of its holders to discourage people from holding onto it for a long while. This is in contrast with other major cryptocurrencies like Ethereum or bitcoin which have caps on how many coins can be issued and help retain the coins value when it is in scarcity. 
  • Decide on a Crypto Exchange: To invest in dogecoin, you have first open an account with a crypto exchange which is reliable and has been in the system for a while now. The cryptocurrency should also have options for buyers and sellers to exchange the digital currency for dollars. You have to decide on the best cryptocurrency exchange that will not squander your sweats. Consider some beginner-friendly apps that you can transfer your coins to when you desire another app. Looking at an app like Robinhood, it becomes very difficult to transfer your investment and for you to gain your investment, you have to sell the coins and rebuy them on an exchange to move them to a separate wallet.
  • Select a payment option to trade with: To trade in the forex market, you need to make a deposit into your exchange account and in most instances you will be allowed to send the money through your bank account or Paypal. Some brokerages also accept wire transfers. You basically get instant access to the money deposited for trading. But large sums of money ranging from $1,000 and above need to take time for transfer to clear before the full deposit can be used. One thing you need to take into consideration is that not all exchanges allow the use of credit cards for you to buy dogecoin and other cryptocurrencies.   
  • Place an order for dogecoin: After choosing your payment option and being sure there is enough funds in your account, you can purchase dogecoin. On the trading platform, search for the Doge symbol. Pick your trading type and input the amount of dollars you want to invest. After placing the order, it should go through immediately without any hitches. Dogecoin is not limited by trading hours and as that, you can buy Dogecoin 24hours a day and seven days a week. 

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Smartandstuck

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