What is Cryptocurrency? Here’s what you need to know.
Despite the fact that it has been ten whole years since it came into existence; Cryptocurrency is still a mumbo jumbo for many. That is because a lot of people find it difficult to hold the thought that anything that doesn’t exist in the real-world would-be money.
Whenever you hear someone talking of making fortune in the cryptocurrency business, do questions pop into your mind – such as “what cryptocurrency is?” “Is Bitcoin called the cryptocurrency?” “Is Ethereum also a cryptocurrency?” You are not alone in this. This article has covered everything regarding cryptocurrency you need to know.
What exactly is Cryptocurrency?
Cryptocurrency is a form of digital money and you can shop online anything using it. This digital money has electronical existence only unless you withdraw the money as physical tokens.
How does Cryptocurrency work?
Cryptocurrency can be exchanged with any other individual over the internet without having to use a bank as an intermediary. Several brands are trading in the vastly emerging business of cryptocurrency. Bitcoin and Ethereum are the two most famous ones among these brands. Bitcoin has been an all-time famous that it’s known as an alternative name for cryptocurrency.
As the name suggests – cryptocurrency – the transactions are encrypted that ensures the secure exchange of money. Blockchain technology – a decentralized technology – was used to build cryptocurrency. This technology is best known for being immune to hackers and online looters. Despite blockchain technology, there have been cases of cryptocurrency hacks.
Is Cryptocurrency a good investment?
Whenever an investment is to be made, it’s equivalent to taking a risk. Either you will make it or break it. Investing in cryptocurrency is no less different than that. But it still seems attractive to invest in cryptocurrency. Therefore many people put their money into that business.
The risks associated with the investment can be mitigated if one understands the factors involved – that can make you lose or make you earn. Here are some of the pro tips to help you make favorable decisions.
What are Cryptocurrency Exchanges?
Before making investments, learn what Cryptocurrency exchanges are and which one would work best for you. Cryptocurrency exchanges let you exchange money for online assets, and you can expect to earn profit with these assets. There are roughly more than 500 exchanges that can befuddle anyone making a debut attempt at the cryptocurrency business. Do your best research and consult with someone who proved himself proficient at this.
How to Store Your Digital Currency?
There are several kinds of digital wallets where you can store your cryptocurrency. Each wallet is different from the other in terms of benefits, security, and requirements. You must be familiar with the digital wallet/s before you choose an exchange to trade into.
Invest in different brands
When it comes to investing in cryptocurrency, do not stick to just one brand. It’s best to invest in more than one brand. You can earn more from diversifying your investments. But for the newbies, it’s best to try one brand initially and once you’ve practically understood the flow of things, there’s no stopping.
Be prepared for the unpredictability
The cryptocurrency business can take you anywhere, it is a business full of surprises. You must brace yourself for the ups and downs. This is the game for those with strong minds and flexibility to take the strain.
If you think you can ride the wave, you must put money in the cryptocurrency market. Research, determination, and a hunch for making money would suffice you to be successful and earn what you aim for.
Can you lose money in Cryptocurrency?
You can always lose your digital money. If you lose the password or forget the password to your digital wallet, you might never be able to access your money. It will be gone for good. Since cryptocurrency is neither regulated by the government nor it is stored in a state bank. So, you will have nobody to turn to for help.
Besides this, scammers are always on the loose, devising new methods to steal your money. There is a high probability that anybody who specifically asks you to pay with cryptocurrency could be a scam. If you spot companies promising you attractive offers on paying with cryptocurrency, they are a scam. Watch out for the offers that seem too good to be true.
What is PancakeSwap & BakerySwap?
PancakeSwap & BakerySwap both are DeFi based Exchanges where you can swap your tokens. Both are one of their kind food-themed decentralized finance platforms that work on the Automated Market Maker (AMM) Model, while based on the Binance Smart Chain.
Both these platforms provide a place to trade digital assets without an order book (means you do not have to match with a buyer or a seller). Rather the users would be trading against a liquidity pool.
People pour their funds into liquidity pools and they would get liquidity provider (or LP) tokens in return. These tokens can then be used to reclaim their share and a portion of the trading fees.