Analysis of the Cryptocurrency Market
This time I come to talk about a topic that is very fashionable especially for those who like short-term investment, because of the enormous possibilities they have.
The cryptocoins are born of new technologies. They are born of the technology called "Blockchain" or blocks. It is a type of programming that will allow what is done to be seen by all. And it is here, right here at this point, that gives security to cryptocurrencies.
Who produces the cryptocurrencies? They are produced by the miners, who are usually programmers who have very powerful computer equipment, with the requirements that are required to generate this "blockchain" technology. When a new cryptocurrency occurs, what happens is that the whole community sees it, because the connection that there is in the computers prevents that one of them can erase the trace that has been left in Internet of the creation of that cryptoomaneda.
Therefore, what are cryptocurrencies? They are virtual currencies that we will use as a means of payment or also to receive money. This is what makes receptions and payments made, without financial intermediaries.
Benefits of cryptocurrency.
Therefore, it is a currency that does not have state control. There is no central bank of a country or a central bank of a community, such as the European Economic Community, that can say something for or against what cryptocurrencies are. They do not have, therefore, a legal control.
This has its benefits and obviously also has its drawbacks. The part of inconvenience is that the person who does not feel very safe, because maybe, if you do not know much about what blockcahin technology is, you could be quite afraid to put your money in a private company that is offering you a number that It will be the one that will identify your cryptocurrency.
They are a quick correction of letters and numbers that make you possessor of that virtual currency. Therefore, what are they? Coins are virtual currencies that serve us both to receive money and to pay with them and that of course, being quoted in a market, they do that due to the effect of buying and selling, sometimes they rise more other times lower more, because one can buy them or sell them and this will therefore produce a fluctuation between that cryptocurrency and its exchange, either with another cryptocurrency or with a currency of legal tender.
Remember that coins of legal tender type dollar or euro are currencies that are also crossing with crypts and it is there where they intend to make a profit.
Why make cryptocurrencies?
Well, I would say that we have to do cryptocurrencies simply for a very easy reason, because they are here to stay and as more countries are accepting them and to the extent, especially that big Amazon companies start, for example, to admit them as a form of payment will be highly complicated that the cryptoomanedas not stay with us.
For how much that blockchain technology has changed the way of seeing the risks. What I have said before, does not have a control right now, there is no state or central bank that is regulating them, but it is the confidence of all the members of the blockchain system, which allows the cryptocurrencies to be considered more or less secure. .
Of course there have already been some cases in which, it has been seen that at the beginning they gave problems but each time they are improving more and this is a positive point in their favor. How to do them? We have two possibilities. That you organize yourself as a miner, if you are a computer programmer and you consider the possibility of producing them yourself. Which obviously obviously enough to have a payment for their services. Or the other possibility would be that you buy them.
To buy cryptocurrencies we would have to go to a house that sells them to us. It would have to be one of these private companies that are producers or that have a large cryptocurrency fund. In what cryptocurrencies to invest? Well we have several. Although there is one that takes the palm, which is called Bitcoin. The Bitcoin would be the first cryptocurrency. They left in 2008. At the beginning many people thought that good, it would not be something that would stay and would not really produce benefits, which would be a passing fad.
However, things changed with some people from Silicon Valley especially a man known as Bill Gates began to have a lot of interest in them. It was the year in which the Bitcoin cryptocurrency was roughly 200 two hundred dollars and it was at the entrance of the Silicon Valley majors that the Bitcoin cryptocurrency resurfaced and will begin to rise. To give you an idea, since 2008 Bitcoin has come to quote at 6 thousand dollars is more or less its market ceiling.
Imagine the great fortunes that have been made for those people who bet on Bitcoin at the beginning. When it was in its origins they can not make a cryptocurrency and there are no other programmers who also consider the possibility of doing cryptocurrencies again, other different ones. So Ethereum also appeared, which is currently trading in an environment of about three hundred and one dollars.
We also have another cryptocurrency that would be Mitocoin or Litecoin is cryptocurrency, maybe it is one of the three that we can consider as better valued by the people who are the programmers and who are the ones who really understand its quality. The quality of a cryptocurrency goes a lot in the blockchain technology that is used to produce them. Hence, as technology advances, cryptocurrencies are also becoming more powerful.
Here we have Bitcoin, and now he has bifurcated, he has made what is called a fork. What would a fork be? Sorry, my English is not the best, but this word is written like that. Well this is called bifurcation and Bitcoin has bifurcated mainly because Bitcoin has become highly expensive.
It is not in the capacity of everyone who really wants to acquire a single cryptocurrency like a Bitcoin and be paying it at 15 thousand dollars, which is what is trading at this time. So, what has been decided is to fork it and it has bifurcated, how? Generating Bitcoins of lower economic value, as would be the case of Bitcoin Cash or Bitcoin Gold, which would be the last two contributions to Bitcoin's technology. We will see if Bitcoin Cash or Bitcoin Gold end up staying and have similar effects to Bitcoin.
But notice that they are communities of much smaller programmers. The next question that comes up is ...
How do I buy it or where did I buy it?
Well, I can go and buy it from the houses that produce them and sell them. There are many companies like Coinbase as HABTC, and if as Bitfines or Bitstamp, perhaps, they say this is one of the best known, it was a precursor when producing Bitcoin.
Many people will say good and how do I do it? Well, to buy Bitcoin you usually have a support in the house that sells them to you. It is the support can help you in a guide when acquiring them, you have to generate what is called a purse and in that purse is where you will put your Bitcoin but I already advise you not to leave them in the internet and take them out your cryptocurrency code outside, that is, in an offline hardware.
In this offline hardware what we are going to do is take your currency out of the servers. I know the case of some friends of mine who bought Bitcoin that in its beginnings and that today having invested a figure of 500 or 1,000 € at that time they would now have a small fortune. However they had a problem, they did not keep the password well and you are the only person who has access to that code. Without that code you can not re-enter, retrieve your Bitcoin, transfer it to another person or also exchange it for other currencies.
If you have not understood this 100%, if you have never invested in a stock market, if you have never approached a chart, please do not do cryptocurrencies. Cryptocurrencies could be very dangerous for a layman. That's because of their wide fluctuations, the high volatility they have. It is required, if you are going to do CFDs that you are already a trader at least expert and certainly not under any circumstances, buy them with the money you need for electricity, for children's school or to pay for your necessary subjects.
