If you go and visit SlotoZilla or other similar sites, you will be amazed to find out that there are many things you can do with cryptocurrency. The important question is, should you invest in it? Today, we will give you a rundown of cryptocurrency for beginners and also provide the latest crypto news.
What Is Cryptocurrency?
Cryptocurrency is money that is in digital form. However, this kind of money is not centralized. The first decentralized cryptocurrency is Bitcoin.
Back in 1983, a man named David Chaum had an idea. He thought of having money that cannot be traced—it is called anonymous money. He called this digital money “ecash.” It took many years for him to implement it. The idea went to fruition in Digicash. This kind of digital money is not traceable. However, this money was governed by an organization.
It was in 2009 when an anonymous person—who until today we do not know if real—Satoshi Nakamoto, created Bitcoin. The main difference between Bitcoin and the other earlier forms of digital money was that anyone can “mine” and create Bitcoins.
Today, Bitcoin is valued at $59,478 for each coin. This price will fluctuate, as the number of Bitcoins in circulation is limited, and the number of total Bitcoins that can ever be produced has a limit.
Cryptocurrency, in essence, is a type of money that is digital. You buy it with real cash. You can also use it to buy things online, but only if the selling party accepts it. The thing is that many people do not really buy it for spending. Most people buy crypto because they know that it will grow in value over time. If you want to use it, you can do it at a casino online. There are many gambling websites that accept crypto for bets.
Things to Know Before You Do Cryptocurrency Trading
Cryptocurrency is highly volatile digital money. For one, it is a young technology, and not a lot of people are using it. Banks have no control over it, and you need to know some fundamental things about it before you make an investment.
- Volatility: What does this even mean? It means that the value is fluctuating. Depending on your сurrency, it may be worth $1,000 today, and then it can be worth $200 after a year or so. Or it can be worth $10,000 in a few years. The price of cryptocurrency fluctuates really fast because the price depends so much on demand and supply. Since it is decentralized, it does not work like fiat money. With the paper money and coins that we use today, we can rely on banks to put some specific measure of control. Cryptocurrency does not work this way. There is a mining process that is involved. As more people mine the coins, then the more supply we will have. If there are more supplies, then the price will drastically go down.
- Fraud: Since cryptocurrency is an anonymous kind of currency, it cannot be traced. So, if you invest in cryptocurrency and you use that to make a payment to somebody, that person may not send you what you bought. The problem is that you cannot trace this person, which means your money is gone. Cryptocurrency has become the go-to of criminals. Their transactions cannot be traced by banks, and criminals can use them to launder money.
Guarantees of Return
A cryptocurrency has no guaranteed return. As mentioned earlier, there is no controlling organization about its price. For the paper money we are using today, the economy of the country is what dictates its value. The central bank can also print more or lessen the supply.
Cryptocurrency does not work this way. You may think that you should invest now because the prices are going up anyway. The thing is that any investors fall for this trap—they always only know that the price went up because it already did.
What if you invest now and the price went down? You will lose your money, and it can take some time before the price can get back up. The worst thing that can happen is that people may no longer be interested in the digital coin, and then it will completely lose its value.
Three Types of Cryptocurrency You Should Consider
If you want to buy and invest in cryptocurrency, these are the top three that you should consider:
As you know, Bitcoin has a limited supply. It is a highly volatile digital currency, but it is the most popular because it will one day reach its limit. Once this happens, no one can produce any Bitcoin anymore.
ETH is the second best one for the same reason. It has a limited supply, and it can be used for many transactions. XRP is cheap, but it is one of the digital currencies where you can do transactions really fast. XRP is also decentralized, and yet it is governed by a private organization.
Should You Invest in Cryptocurrency?
The answer to this question really depends on your investment appetite. As mentioned earlier, digital currency is highly volatile. It is unlike fiat money. There is no way that people will lose interest in paper bills, and central banks of different countries can always find ways to ensure that the paper bills have value.
Digital currency, on the other hand, is pretty much dependent on the emotions of people. This is the reason why their value can fluctuate so quickly. There is no single approach that can tell you how to win in this investment.
What you can do is buy a few coins and then use them for gaming. What you can do is deposit your cryptocurrency into an online casino and then play. Players can also choose whether they want to withdraw the digital currency or convert it into cash.