No doubt, cryptocurrency, and newly created exchanges are a hot topic right now. Having said that, there are still many individuals who do not know when, how, or where to get hold of it.
What is the first thing you’ll hear people say when they hear people say where they get their money from? They would either say, the bank, their job, parents, or through government benefits, not so? The source is apparent, and in most cases, the monies are obtained through carrying out some kind of duty for it. How would you get hold of Bitcoins?
You would have to buy Bitcoins!
One of the widespread ways to make this happen is through an online exchange that allows you to buy digital currency. Be cautious, however, as not all of them are trustworthy. Do enough research to ensure you make use of a reputed source. Bear in mind that some exchanges will only allow certain currencies such as Ethereum or Litecoin. Be sure to check if the exchange you intend using offer you access to the digital money you are interested in.
When it comes to Bitcoin, you can also utilize a Bitcoin ATM. But, you would have to create a wallet first, which turns out to be a whole series of numbers and letters that you will link to your digital money amount. You may want to think of it as a bank account number.
Bitcoin ATMs can be used in a similar way that you would use a regular ATM in that you can either deposit or withdraw. The money you put in can be used to purchase Bitcoins.
Did you know that as of February 2019, one Bitcoin is valued at $3,357 U.S dollars?
Due to this fact, it may not be possible for some of you to afford one Bitcoin. The value given can change very quickly.
Fortunately for most, one can purchases fractions of the coin, making it accessible to a broader audience. Therefore, anyone can buy cryptocurrency as you would just get the Bitcoin equivalent of whatever portion you buy.
How is Cryptocurrency Created?
We are all aware that money comes through banks. Central banks would just print more when needed and make it available to anyone in need of it. However, they have no part in cryptocurrencies.
This brings us to the question – How is Bitcoin created and how does it grow?
It all happens through a process called mining. Everyone can become a miner if they want to. But, it is not an easy feat and involves a complicated procedure utilizing many computer algorithms that would be processed on a dedicated computer system.
The entire process is extremely complicated. However, the primary goal for miners would be to solve a cryptologic puzzle that would let them build a block and add it to the blockchain.
In simple terms: people would utilize their PCs to perform some crazy calculations that will result in a page to form part of a physical ledger. Miners who manage to do this successfully is given a certain amount of newly created cryptocurrencies. This is how crypto coins are produced.
Is there a need to worry about this in that just anyone can create an infinite supply of digital currencies like Bitcoin?
Firstly, the whole procedure is hard to carry out.
Secondly, one is limited regarding how many cryptocurrencies you are allowed to own. Bitcoin enables an individual to have a maximum of 21 million crypto coins. This limit would vary with other digital currencies. Ethereum has no limit at present.
Some People Believe Cryptocurrency is the Future
Even Bill Gates feel that digital currency is the future. On a world-wide scale, the globe is becoming smaller and the need to have a new world currency increases. Most of us do not like having to deal with exchange rates unless you make money off it by trading currencies. On top of that, who wants to pay the bank fees associated with it?
Digital currencies such as Bitcoin offers a solution in that it can be used anywhere and is accessible to everyone. Furthermore, many are now moving away from using cash and rely more and more on phones and cards for everything they purchase, whether it be big or smaller items.
All the more reason, why you should learn more about doing business with a reputable cryptocurrency exchange.