What is cryptocurrency and is cryptocurrency is good to investment

What is Cryptocurrency?

Cryptocurrency (or “Crypto”) is a currency used for goods and services. A digital payment used to buy goods and services. In General, Cryptocurrency is nothing but tokens made by companies to transfer and traded specially goods and services.

Cryptocurrency mainly works on Blockchain technology its decentralized technology across many computers can manages and records transactions. Which is a part of this technology being its security

Types of Cryptocurrency

There are more than 6,700 different cryptocurrencies are publicly traded. Latest Market research done by Coinmarketcap the total value of all cryptocurrency was more than $1.6 trillion till FEB 2021. And Total Value of Bitcoin was about $969 Billion.

Top Trading cryptocurrency by market Capitalization

Top Trading cryptocurrency by market Capitalization as tracked by Coinmarketcap analytics and data

Bitcoin

Ethereum

Tether

Bitcoin Cash

Chain-link

Binance coin

XRP

Polka dot

Lite coin

Cardano

Cryptocurrency is so Popular Why?

Cryptocurrency is most popular on varies factors below are some reason

• Cryptocurrency removes Central bank from managing the money supply.

• Technology behind Cryptocurrency, Blockchain decentralized processing and recording systems

• Cryptocurrency Can be done with more secure than traditional payment system.• Cryptocurrency has long-term acceptancy as a way to move money.

Is cryptocurrency good to investment?

Cryptocurrency may go up in value. Just like real currencies, cryptocurrency generates no cash flow.

Someone needs to pay more to currency you did.

So, it called “great fool theory “of investment.

As NerdWallet writers said that cryptocurrency like Bitcoin is not that safe. Some Legendary investors they compared bitcoin with paper checks. A proper check worth whole the Money just because they can transmit money.

Those who are ready to invest in bitcoin as a feature currency, there is a less stability through their history. When it comes to DEC 2017 its gradually went down and now at DEC 2020 it raises the value three times. Bitcoin is more valuable in feature currency but people are not ready to spend money on them today.

How to Buy Cryptocurrency?

Cryptocurrencies including bitcoin are available to purchase in US Dollars and some others pay through bitcoin or other cryptocurrency.

To buy cryptocurrency you need to install “Wallet” App and create an account, this app holds your currency. Create an account in general to exchange real money to buy cryptocurrency like bitcoin, Ethereum Etc.…

Some Popular trading exchanges like Coinbase provides you to buy both Wallet and buy and sell Bitcoin and other cryptocurrency.

Cryptocurrency is Legal?

It depends upon the country like which its is legal in United States and China totally bans the cryptocurrency. Beware of fraudsters who fools the people to invest.

Protect yourself before Buying Cryptocurrency

If you are looking to buy Cryptocurrency, check these steps before buy.

• Company Details, who owns the company. Well established company is Good.

• Check with other investors once before invest, if they are frequently doing transactions with that particular company, it’s a good sign.

• Will you own a stake or token or just currency? This distinction is important.

• Owning a stake means you are participating in earning, means you’re the Owner.

• The company looks to raise the money to develop it? A less risky in it when future along the product.

By these concerns, Having the cryptocurrency is a risk of theft by hackers. On long back 2014 some hackers got stolen Hundred of millions of dollars in Bitcoin. There a typical in investing in stocks and funds on major US exchange.