Bitcoin and Blockchain technology are growing massive traction in media outlets around the globe pumping its contents across the network. Blockchain technology is a revolutionary implementation into our growing world. The network keeps continuous records (blocks) connected securely using cryptography. Thousands of "computers" validate and confirm all movement, allowing anything in the Blockchain to have its own history. The most popular name involved in Blockchain tech is Bitcoin, but the tech is sprouting across multiple industries. Essentially, Bitcoin is the number one cryptocurrency using the Blockchain as a payment system. Working without any single administrator (Aka. Paypal).
These were extremely basic summaries and I encourage you to surf the web and research. Especially Blockchain, it can't be stopped and isn't dependent on public movement. It's developing a new way of validating and securing services/currencies across the globe without a centralized system. Unfortunately, Bitcoin gets all the press exposure and reporters never touch on Blockchain either. It can take a while to learn the ropes and understand how to get involved and how everything works.
Here are the three key points about cryptocurrencies you should know this week...
Firstly, you don't have to buy one full "coin" of any cryptocurrency. While media outlets speak about "Bitcoin is now $15,000 a coin", it misleads the public in the understanding of how buying, selling and using cryptocurrency actually works.
YOU DO NOT HAVE TO BUY ONE FULL COIN AT A TIME
This part is crucial, you can buy a percentage of a coin depending on the money you put in. There are no restrictions that force you into purchasing only by the coin, it's by the current value of the coin relative to your initial investment.
For example, let's say a Bitcoin is $100 CAD a coin at the exact time you want to purchase some of the market, but you only can afford $50 CAD. This means you can purchase 0.5 BTC and your $50 fluctuates with the coins value. At the current time of this article's publication, Bitcoin is over $19,000 CAD a coin, so a 5% increase is more than pennies now for those owning a full coin. In conclusion, you can put $100 into a cryptocurrency rather than its current value for a coin. You can own 0.0055556 BTC and potentially still see small returns. Coinbase is a trusted cryptocurrency exchange where it's easy to start buying/selling.
Secondly, once you've purchased your crypto on an exchange make sure to transfer over to a secure crypto wallet. Your crypto wallet is encrypted within your device, you'll be randomly assigned a 12-word seed that links with your wallet verification. I recommend never writing it on any device, simply write it down on a few pieces of paper and hide it around your house. Under the "Receive" column you'll have an address for that specific coin, this is the code you use to transfer exchanges funds into your wallet and have others transfer you money. I got my Litecoin wallet started with Electrum, here's a link to an easy description for setting up.
Lastly, Bitcoin is not the only useful cryptocurrency on the exchange. Litecoin and Ethereum are all competing with different values and potential. Bitcoin has been the biggest player with its powerful media exposure and high price. Its predicted to be the investment currency in the future. While Ethereum is far behind, currently floating around $550 CAD, it's Bitcoin equivalent in its potential.
Litecoin is predicted to be the new common currency, due to it being named the silver to Bitcoin and Ethereum. It has been gaining traction along with Bitcoin, but not to the same drastic extent. A non-existent marketing strategy by its founder, Charlie Lee, has lead to Litecoin not having the same unbelievable value of a Bitcoin. Nonetheless, it has risen 2000% since last year and Charlie recently went to twitter to announce Litecoin will begin its marketing future soon. Litecoin owners should be excited for the near future.
There are more cryptocurrencies available depending on the exchange service, but these are the three current leaders. We can expect more big players to grow in value if crpytocurrency continues its expansion. BitcoinCash, Dash, and Ripple to name a few.
If you've struggled with understanding cryptocurrency or have no information on the subject, I hope this piece has made things easier. Just like any stock investment, the future profitability of Bitcoin, Litecoin, and Ethereum are not guaranteed. I believe we'll see a crucial turning point in 2018 with more public knowledge and possibly government interaction?
What do you think?