Cryptocurrencies can also be termed as digital currencies/virtual currencies/Cryptos. This is money which is in digital form and traded over the internet.
Back ground of Cryptocurrency
The idea of Cryptocurrency began in 1988 when there were talks and plans of introducing bit Gold. Though this took a long time to come into fruition. In 2008 Satoshi Nakamoto an anonymous person implemented this idea by introducing Bitcoin which officially began functioning in 2009 where its price was as low as $0.06 which is (219shs) in Ugandan shillings. Bitcoin has predominated the cryptocurrency domain for now 9years and throughout its course of operations it has thrived with increase in its value over the years. For example in May 2017 it was trading at about $2,500, by September last year it doubled to $5000 then in a period of 3 months that was in December it winded up the year when it was at its high of $12,000.
Cryptocurrencies are obtained through a process called mining. With Bitcoin, mining is done by miners using computers. These computers are very smart devices which ensure originality of the coins. There are over 1600 coins on the coin market cap. Some of the coins include Bitcoin, Etherium, Ripple, Bitcoin cash, Cardano, Steem and so on.
Cryptography
This is a terminology that entails securing information using codes. Cryptocurrency was birthed from this idea.
Blockchain technology
This refers to a series of secured information arranged in blocks through cryptograpy. It’s decentralised in nature where there is no central authority of the system.
Are Cryptocurrencies worth your investment?
Secure
These employ a computer system (Cryptology) which is used in generating new coins, confirming the trade of coins and also prevent the fraud occurrences. It is also backed up by a great technology known as blockchain technology which ensures security of the coins that is through its being a decentralised model where no central authority is involved implying that the members on the network have full control over their investments that are inform of coins.
Exclusion of the middle man/3rd parties
In cryptocurrency the 3rd party (banks) are eliminated in the transactions. The financial dealing or trading is between 2 parties that is the buyer and the seller who exchange coins at their own will under their own agreed terms and conditions. Hence this makes cryptocurrency trading cost friendly because there are no costs involved in the transactions.
Instant transaction
This makes international trade very convenient as trading between a buyer and seller is done instantly over the internet at just a click of a mouse. This is therefore time saving. In day to day businesses, a high and quick transaction rate is vital in business success. Investing in Cryptocurrency in something that is of worth which can make us enjoy this kind of fruit.
Huge return on investment/highly profitable
As this solid truth stands that is the higher the risk the higher the profit. Cryptocurrencies Investment provides you with a high rate of return on your initial investment as their value keeps on escalating against the modern fiat money value hence this puts you in a much better position of enjoying the high rate of return on your initial investment. For example a person who invested in Bitcoin at its initial stages like in 2009 when the value 1 btc was at $0.06 is now enjoying a great huge benefit of $8250 as of now.
Basing on these elaborated facts and findings I have compiled, I greatly conclude that Cryptocurrency is a very worth investment that I encourage and recommend myself and the rest of the people all over the world to make bold decisions and dare to invest in them.
However everyone should know that Investing in Cryptocurrencies is a highly risky venture. A person ought to invest money in them that he/she can afford to lose as these are highly risky. Like forex trading these are as well so much of speculative investment. Like any other business, the higher the risk, the higher the profit.
I advise people to make more research on Cryptocurrency investment and trading before making decisions to invest in them. Consult your financial advisor if you have one to give you more guidance on how to trade in Cryptocurrency.
Thanks for reading and supporting.