Know How Cryptocurrency Works And The Legal and Profitable Way to Play Crypto To Always Win
Know How Cryptocurrency Works To Always Win And Benefits – More and more people are fond of investing in crypto assets around the world. They see sharp fluctuations in the price of crypto assets as an opportunity to maximize profits and enrich their investment portfolio.
How can we do the same? This article will tell you about the background of crypto investment, its legal status, and how to safely invest in crypto in the US, Canada, UK, Germany, Australia, Netherlands, France, and Luxemburg.
The term “crypto” is an abbreviation of “cryptocurrency” which in America, Europe, and Asia will be translated into “crypto assets”. So, crypto investment is the activity of investing funds in crypto assets with the aim of obtaining profits at a later date. This can also be referred to as “crypto asset investment”.
Bitcoin is the world’s first crypto asset. Started by an anonymous developer under the pen name “Satoshi Nakamoto”, Bitcoin offers a decentralized alternative to international payment transactions through blockchain technology.
The Legal and Profitable Way to Play Crypto To Always Win
All transactions are recorded automatically as digital information on the blockchain and are not managed by any particular bank or institution. The deal is encrypted and protected by cryptography, so it is anti-counterfeiting and can be independently verified.
Over time, more and more people are using Bitcoin thanks to its advantages over traditional transaction models. The more people use it, the more expensive the Bitcoin exchange rate will be compared to fiat currency.
After the success of Bitcoin, other developers have sprung up to give birth to more crypto assets such as Ethereum, Tether, Litecoin, BitcoinCash, and others by leveraging blockchain technology. Its use is not only for matters of sending money abroad but also for making smart contracts to supply chain management.
Each crypto asset presents a different solution, so usage rates and prices fluctuate. At the same time, an unprecedented type of “crypto asset” investment instrument was born.
When investing in crypto assets, we are not buying Bitcoin and others as the currency that will be used to buy certain goods or services. Investing in crypto assets means that we buy Bitcoin and other coins with rupiah, then sell them again after the price rises at a later date.
How to Invest in Crypto Assets Safely?
The popularity of crypto assets has spawned various modes of fraud in cyberspace. Many ordinary people are trapped by these modes because they are tempted by the lure of money without understanding the risks that come with it.
This is the importance of investing in crypto assets through a platform that has been registered and supervised by Bappebti.
How to safely invest in crypto assets includes 5 (five) steps, namely:
- Choose a brokerage company or crypto trading platform that has obtained Bappebti’s permit.
- Download the application online, then fill out the registration/account creation form on the platform of your choice.
- Deposit capital to invest. Investing in crypto assets carries a high risk, so it is best to use idle money that is not intended for a specific purpose.
- Choose the crypto asset you are interested in. Check the background of the crypto asset, who is the developer and what is it used for, and which party adopted it. Prospective crypto assets are usually associated with trusted international institutions.
Arrange a crypto asset investment strategy that suits your goals. If you have a long-term target, it’s a good idea to implement a Dollar Cost Averaging (DCA) strategy by making regular and gradual purchases. If you have short-term goals, you should study technical analysis so you can buy/sell crypto at the right time.
Crypto Currency Functions
As a legal medium of exchange, cryptocurrency has several functions that are now commonly used or frequently used. Here are some cryptocurrency functions that you need to know:
1. To Purchase Goods or Services
The first function of digital currency is, of course, as a means of payment for buying goods or services. Until now, many shops or shopping places have implemented or accepted this digital currency as a means of payment for the goods or services they sell, for example, such as Overstock and Newegg.
In addition, this digital currency can even be used in various restaurants, hotels, and travel applications, and now there are even universities that accept this digital currency as a means of payment.
But not all types of digital currency are accepted, until recently only Bitcoins were accepted to do all of these things.
2. As a Form of Investment
The second function of digital currency is as a medium or form of investment. This form of investing in digital money is more or less the same as investing in general, where when the price is cheap enough, you can buy it. Then once the price goes up, you can resell it.
This digital currency is a type of investment with a fairly high risk. At the beginning of its emergence, many people suddenly became rich because they invested in digital money by enjoying the price increases that occurred in the market. However, now this form of digital money investment is not as fast as when it appeared a few years ago.
The next function of this digital currency is mining. Mining is a term based on the activity of ‘mining’ to obtain these digital cash assets. The term refers to the activity of solving cryptocurrency puzzles to increase cryptocurrency assets.
Solving the puzzle is not easy, you need a lot of computing power. The more computing power you have, the better chance you have of solving the puzzle.
How Cryptocurrencies Work
Cryptocurrency can be said to be a means of payment that is almost the same as a means of paying money physically today. The difference is, for this currency there is no central party that regulates the amount of circulation of this currency.
This is due to the way this digital currency works, namely when a transaction occurs using cryptocurrency, the transaction will produce cryptographic evidence that has been verified and recorded in the blockchain.
Types of Cryptocurrencies
After getting to know what cryptocurrency is, its functions, and how digital money works, now is the time for you to know what digital currency is. Currently, there are various types of cryptocurrencies circulating in the community, and here are some types of cryptocurrencies that are most trusted by the public:
The first type of cryptocurrency is Bitcoin. Bitcoin is the most well-known type of digital currency as well as the first type of digital currency that is known by many people in general.
Bitcoin itself first appeared in 2009 through a party named Satoshi Nakamoto. Then in 2019, there were at least 18 million Bitcoins traded. To date, more than 50% of digital currency is Bitcoin.
The second type of cryptocurrency is Litecoin. Litecoin first appeared in 2011 as a P2P or peer-to-peer currency. This type of digital currency has a faster speed and has introduced new blocks that will form the blockchain. Because of this, Litecoin also does not require a powerful computing system.
The next type of cryptocurrency is Dogecoin. As the name implies, Dogecoin has a dog logo. Dogecoin is famous for its community which often does positive things such as charity and donations. In addition, Dogecoin is also known to be cheaper when compared to Bitcoin.
The next type of cryptocurrency is Bitcoin Cash. BitcoinCash was first launched in August 2017. Although this type of digital currency is still relatively new, Bitcoin Cash is already one of the best types of digital currency.
BitcoinCash exists because there are some parties who do not agree with the rules of Bitcoin. Some of those who disagree then split from Bitcoin and decided to create their own currency which they later named BitcoinCash.
As a digital currency that is widely used by the public, cryptocurrency certainly has several advantages that you need to know about. Here are some of the advantages of digital currency:
1. Is Universal
The advantage of the first digital currency is that it is universal. This is because anyone can buy this digital currency. In addition, the parameters used to measure exchange rates are also easier and not as many as conventional currencies in general.
2. Transactions Can Be Done Quickly
The advantage of the second digital currency is that you can make transactions quickly. For example, if you are going to make transactions between international banks, it could take up to several days. Another thing with this digital currency, transactions can be done in minutes.
3. Personally Controllable
The next advantage of this digital currency is that you can control it personally. When you use this digital currency even decide to invest, you can work independently and be responsible for the assets you own.
Disadvantages of Cryptocurrencies
After knowing what are the advantages of this digital currency, of course, this digital currency also has its own drawbacks. Here are some of the disadvantages of this cryptocurrency:
1. The Occurrence of a Crime
When you make transactions with this digital currency, you cannot know who you are making transactions with. You can only see information in the form of numbers, such as how much digital currency costs and so on. Therefore, this digital currency can become a place for money laundering or various things that can violate the law.
2. Considered Illegal
Even though this digital currency is not new to the community, there are still those who argue that this digital currency is illegal. This is also because there are several countries that do not give permission to use these digital currency transaction facilities.
Are You Interested in Cryptocurrency Investment? Those are some information about cryptocurrencies. Cryptocurrency is a digital currency asset that many people now know about. Based on this information, are you interested in this digital currency?