What is cryptocurrency?

 

Cryptocurrency is one of the virtual currency which is based on Cryptography and mathematical algorithms. It does not exist in physical form (like paper money) and is not issued by a central authority. The decentralisation of cryptocurrency networks makes there is no central authority. The core of cryptocurrency is built on a technology called a blockchain. It is composed of multiple nodes and linked together. In cryptocurrency, nodes keep a copy of the database. Everyone effectively acts as their server. Individual nodes can go offline, but their peers will still get information from other nodes. 

 

 

 

 

Why should we learn cryptocurrency?

 

High rate of return

 

The profit of investing in cryptocurrency is quite good. For example, the price of Ether in February is USD 236, and Ether has risen to USD 1,700 in February 2021. In this period, there are more than six times increasing profit. Cryptocurrency is still growing, and it’s good timing to invest it.

 

Low threshold 

 

Compare to other financial instrument; it’s easy to enter the cryptocurrency market. For example, the minimum purchase of U.S. stocks can be one share, the stock prices of some large companies are very high such as Tesla. It is about $800. However, the minimum amount to buy cryptocurrency can be around $40. 

 

Able to trade 24/7

 

Cryptocurrency operates on a blockchain network; you can trade cryptocurrency 24/7. Therefore, you don’t need to sacrifice your sleeping time at night like watching the US stock market. You can trade cryptocurrency anytime, anywhere, and cryptocurrency is also a kind of funds that can be used at any time.

 

New assets with potential

 

More and more people notice cryptocurrency the recent, and there is more fund in the cryptocurrency market. At present, cryptocurrency is still a developing market, and it is the only new type of asset that we can buy at a lower price.

 

 

 

FAQ

 

1. Is the risk of investing in cryptocurrency high?

 

The price of cryptocurrency is high volatility. If you are a short-term investor, it might be an increased risk. In contrast to long-term investors, the risk is lower. In the past two years, the volatility of Bitcoin and Ether have been trending up. Even if you bought the highest position in 2019, you would be able to turn losses into profits after one year successfully. Moreover, you may get three to four times profit in 2021.

 

 

2. Will cryptocurrency be hacked?

 

There’s a degree of risk taken on with cryptocurrency. So far, public-key cryptography has not yet been broken. The best way to avoid being stolen is aware of common scams (social engineering, phishing, etc.), keeping your private keys offline at all times, and backing them up in a secure location.

 

 

3.Can I trade cryptocurrency?

 

The volatility of cryptocurrency is high, so not everyone can accept the volatility. However, if you can get cryptocurrency volatility and have extra money for investing, you can consider buying this new asset such as cryptocurrency.