In 2009 Satoshi Nakamoto with a group of developers was working on what was going to become one of the most significant inventions in the 21st century. Before the year ran out, he introduced Bitcoin as the first cryptocurrency. A lot has changed since then.
A cryptocurrency is a digital currency but performs all the functions of fiat currency (as Euro, Dollar etc.). Thus, you can make transactions or pay for goods and services with digital currencies.
Since the first cryptocurrency was invented, over 1,500 other digital currencies have been created. The astronomical rise in the number of digital currencies is connected to their appealing advantages, each of them offers. But all of them have some similar features.
Faster transaction
Transactions conducted with digital currencies are faster than those performed with regular coins. Cryptocurrency eliminated the need for third parties, one of the reasons behind the slow transaction speed fiat currencies are known for, especially when making international transactions. For example, you can make international transactions within a couple of minutes, a transaction that may take days with regular currencies.
Security
Cryptocurrency is built on blockchain technology, which provides reliable security for users of the digital currency. Blockchain provides a platform that people can trust to protect, control and share their data as they want. There's no person behind the bitcoin unless you want to share it.
Investment opportunities
Many people think that cryptocurrency is used as a medium of exchange alone. That's a misconception. It is more than that. It offers people great opportunities to invest and those who used it wisely had already benefitted much.
Thousands of digital currencies in circulation offer investors the opportunity to invest in any digital currency of their choice. However, cryptocurrency investment requires more than just a desire to invest in digital currencies. You must understand the best trading techniques that will increase chances to profit.
Know each coin
Take enough time to go through the best digital coins and study them. The knowledge will help you to invest wisely.
Diversify
Don't put all your investment in a single coin. Putting all your eggs in one basket increases the possibility of losing it all if the coin doesn't perform well in the market.On the other hand, if you spread your investment, you have something to bank on if one fails.
Know when to buy or sell
An investor must have this knowledge if he or she wants to make something out of the investment. Cryptocurrency fluctuates in value, and this determines how a currency will perform.
Cryptocurrency is here to stay and offers a promising future.
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