Entry into cryptocurrencies
Cryptocurrencies are money, similar to dollars, yen or the euro. The difference is that this currency is not managed by a central bank or government. The administration is decentralized and independent how to store cryptocurrency. That is, there is no institution that has an impact on the money supply. In this way, citizens are protected from negative interest, expropriation and other central bank policy objectives.
Value of the cryptocurrency?
Now, of course, the question arises, what is actually such a Bitcoin worth and how to rate it? The whole thing is relatively simple. There is no rating, basically the value is zero. Cryptocurrencies live on trust. That’s why Bitcoin, Dash or other currencies follow the market. That is, the value is determined by supply and demand. There is no government that interferes.
The current value of all cryptocurrencies is approximately 100 billion (market capitalization) and varies by the second. It is a system that is in motion and therefore very flexible. The volume is likely to increase over the next few years. It should be kept in mind that many companies are slowly starting to rely on cryptocurrencies. For example, REMAX in the UK has already accepted Bitcoin as a means of payment, and Amazon is also considering it. Even large car manufacturers come already in contact with Bitcoin.
How do I get cryptocurrencies?
The whole thing is relatively simple. You buy them. But to buy cryptocurrencies you have to show some things. First, of course, you need money, in the world of cryptos called Euro and other legal tender FIAT. So you have to convert your FIAT into coins first.
FIAT stems from the fact that the currencies (Euro / Dollar / Yen / Ruble) are no hard currencies (gold-covered) anymore, but have only an intrinsic value of zero . However, they need this FIAT money to buy Bitcoin or Ripple.
You can then transfer all of this from your bank account to an Exchange. They then buy their coins on this stock exchange. These exchanges are different according to the amount of currencies and functions. The best known are Kraken, Poloniex or Bitcoin de. So, if you have then transferred your money to the stock market, you can buy coins. In Kraken You have a great choice; Poloniex is the more expensive competition and Bitcoin.de you can only buy Bitcoin and Ethereum. After the purchase has been made, you can transfer the money to a wallet!
Where to keep cryptocurrencies on?
For this task, there is the wallet. These wallets are used to keep your coins. An exchange is only used for short-term storage of the coins. Imagine Wallet like a safe that keeps your money on the internet to keep it safe. It’s also about having full access and rights only in the wallet. That is, with so-called “Forks” they only have the right to vote in the wallet, not at the exchange.
For Bitcoin Blockchain.info is suitable here. But there is also a wallet for every other currency. As an example, DASH, Litecoin or Ethereum offer a wallet on their own site. So you either have to have a lot of wallet or a multi-wallet, but I’m not an expert in this field and therefore cannot say anything about security. Also, I could not examine the scope in detail, because the offer is too endless.
There are other wallets that are independent. Make sure, however, that the providers are also serious. I also read posts in recent weeks where a wallet was just cracked.
How liquid are cryptocurrencies?
Cryptocurrencies are characterized by the fact that they are very liquid and above all fast. You do not need a bank for this and no more banking days. Transfers are usually done instant in the blockchain. There may be delays, especially if the network is overloaded. But usually the money is more liquid than the bank account, they have unrestricted access worldwide.
But the advantage is you are independent of any institution. This means that your money / crypto belongs to you 100%. While banknotes is just a promissory note.