Anyone who wants to invest and make incredible gains, has thought about investing in crypto-currencies. Bitcoin has shown a record growth from a few cents to over $60,000.
For this reason, many people would like to put their money into this token, so that they can enjoy the earning opportunities that this market represents. Whether you are a young investor or someone who is more experienced, before you jump in, you need to know what the characteristics of the crypto-currency market are, where to buy them, what assets to look at, etc. You should also ask yourself questions about the risks you are exposing yourself to by putting your money in.
What is a crypto-currency
Contrary to popular belief, crypto-currency is not a digital version of the euro or the dollar. It is a tool that does not depend on national banks, does not have a regulatory and supervisory authority. It has no physical assets and no unique electronic form.
Crypto-currency is a record, a unit of calculation, whose information is stored in a wallet. Crypto-currency investments do not confer shareholder rights and do not involve the payment of dividends, such as shares. This applies whether you are a user of Bitcoin Prime or another crypto-currency exchange.
So what is the purpose of crypto-currency ?
A natural question that most curious people ask is why crypto-currency exists and what its use is. To put it simply, we can say that this digital currency has two purposes namely. It is :
– a payment instrument,
– an investment tool.
In some countries, such as Russia, it is prohibited to use any digital currency as a means of payment. However, in others such as Japan, Germany, Switzerland and some other countries, it is perfectly legal. That said, whether the currency is in use or not, it is still very much present in online transactions.
In fact, most of the platforms. Russian investors do not hesitate to invest their money in crypto assets, and this is the case for many others.
How is the price of a crypto-currency formed ?
As mentioned above, crypto currency is not secured by anything. It is an electronic entry in your wallet. In many ways, its price depends on the mood of the market, the volume of investments and the number of coins in circulation. For example, bitcoin accounts for about 62% of total turnover. For this reason, bitcoin is the most expensive and most popular “crypto” on the market.
The value of any crypto currency on the exchange is not guaranteed by anything, so it is volatile. Its price changes frequently and sharply, the reasons for which can be as follows :
– the fight of the supervisory authorities against money laundering through crypto-currencies ;
– a ban on the circulation of digital currency;
– large investments, e.g. Elon Musk’s purchase of bitcoins;
– public statements: in this regard, Elon Musk raised the rate of the comical currency DogeCoin with a single message on Twitter;
– shutting down and crashing exchanges, as well as launching new ones;
– shortage or glut of crypto-currency mining equipment, etc.
Crypto-currencies are still a growing market. And even if some investors have not yet got used to these new assets, it is still true that it is the investment of the century. So you too can enjoy this investment, provided you know how to do it.